The Globe and Mail reports in its Saturday, Aug. 5, edition that the U.S. economy added fewer jobs than expected in July, but solid wage gains and a decline in the unemployment rate back to 3.5 per cent pointed to continued tightness in labour market conditions. A Reuters dispatch to The Globe reports that the U.S. Labour Department's employment report on Friday also showed job gains in May and June were revised lower, potentially suggesting demand for labour was slowing in the wake of the Federal Reserve's hefty interest rate hikes. However, with 1.6 job openings for every unemployed person in June, the moderation in hiring may also be the result of companies failing to find workers. Reuters says the mixed report did not change growing perceptions among economists that the Fed could engineer a "soft landing" for the economy, though much would depend on the direction of inflation after annual increases in prices slowed sharply in June. Indeed Hiring Lab's Nick Bunker sees signs of a soft land, "but that path can also lead us to a sustained downturn if we miss the exit to a sustainable and strong labour market. ... There is still a strong possibility that the labour market can rebalance without a recession."