US employers added 164,000 jobs in July, according to the Labor Department, a figure below economists’ forecasts. The unemployment rate dipped slightly to 5.0%.

Average hourly earnings rose modestly, indicating some wage pressure in the labor market. However, the overall pace of job creation suggests a potential moderation in economic growth.

Analysts are closely watching these figures for signals about the Federal Reserve’s future interest rate policy. Slower job growth could lead the Fed to reconsider its tightening cycle.