Employers added 187,000 jobs in July and the unemployment rate was 3.5%.
Employment in the US held steady last month, raising hopes that the economy will avoid a painful downturn.
Employers added 187,000 jobs, similar to June, while the jobless rate dipped to 3.5%, from 3.6% in the prior month, the Labor Department said.
The report was the latest sign of economic resilience in the US in the face of the battle to stabilise prices.
The US central bank has raised interest rates sharply to try to rein in price inflation.