The Pro Trump News home page features 60 new headlines every 24 hours, click here to see them.
The July employment report is out. It’s not good.
Employment was expected to increase by 175,000, but only 114,000 jobs were created.
The unemployment rate also rose to 4.3%, higher than expected.
The U.S. economy created fewer jobs than expected and the unemployment rate rose, suggesting the labor market could slow sharply at a time when the Federal Reserve may soon cut interest rates.
The Bureau of Labor Statistics (BLS) said 114,000 new jobs were added in July, down from 179,000 in June and below the consensus forecast of 175,000.
The unemployment rate rose to 4.3% from 4.1%, beating the 4.1% forecast by economists. This would be the highest unemployment rate since October 2021.
Average hourly earnings rose 3.6% year-on-year, below expectations. On a monthly basis, average hourly earnings rose 0.2%.
The labor force participation rate increased slightly from 62.6 percent to 62.7 percent. The average number of hours worked per week decreased from 34.3 to 34.2 hours.
In response to the data, Chris Rupkey, chief economist at FwdBonds, warned: “The risks to the labor market are clearly on the downside and rising unemployment could unleash a broader economy. Job losses on this scale have never been seen outside of a recession.”
“The sudden decline in the labor market [Federal Reserve Chair Jerome] “This is exactly what Chairman Powell was watching closely,” said Chris Rupkey, chief economist at FwdBonds.
“The risks to the labor market are clearly on the downside, with rising unemployment potentially devastating for the broader economy. Job losses of this magnitude have never been seen outside of a recession,” he wrote in a Friday note.
advertisement
