U.S. job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a sharp moderation in the labor market. Nonfarm payrolls increased by 73,000 jobs last month after rising by a downwardly revised 14,

The loss of federal workers was reflected in the numbers, while hiring was flat across a number of industries.

Employers across the U.S. added 73,000 jobs in July, a slowdown from previous months and a sign the labor market is downshifting. Hiring was weaker than expected by economists, who had forecast payroll gains of 115,000 jobs last month, according to a poll by FactSet. The unemployment rate rose to 4.2%, up from 4.1% in June.