America's employment market continues to defy a broader economic slowdown with employers adding a surprisingly large number of jobs in July.

Employers created 528,000 jobs in July, which is more than double what economists expected.

The unemployment rate fell to 3.5%, its lowest level since right before the pandemic struck in early 2020.

The job market has been resilient so far this year and is one reason many economists believe the economy is not yet in a recession even though gross domestic product, the broadest measure of economic output, has contracted for two quarters in a row — one rule of thumb for the onset of a downturn.

The latest monthly employment report from the Labor Department follows another report showing that job openings remained at historic highs as of June.

Investors have been closely watching employment data for clues on whether the Federal Reserve could eventually ease off its aggressive rate increase policy. The strong job market likely means the central bank will continue raising rates as it tries to fight the highest inflation in 40 years.

One of Wall Street's main concerns is whether the Fed can succeed in slowing the economy enough to cool inflation without veering into a recession.