The US labor market has carried out reality lasts in July, in July, increased only 73,000 jobs, well below the expected 110,000 economists and marking one of the lowest months in almost five years.
The disappointing data of jobs have been aggravated by massive decline revisions totaling 258,000 jobs for the previous two months, the unemployment rate of 4.2%.
The weakness of employment has rekindled speculation on federal reserve rate decreases, even if the markets are struggling with the growing pricing policies of President Trump and their potential economic impact.
American pay data shows stressful signs for the economy
The July employment report revealed disturbing underlying weaknesses that extend far beyond disappointment. The creation of jobs of only 73,000 positions represented a spectacular deceleration of the already awakened performance in June, which was revised from 147,000 to only 14,000 jobs. The Bureau of Labor Statistics has described revisions like “larger than normal”, the May beay reduced from 125,000 to only 19,000 jobs added for the month.
The sectoral breakup has painted a mixed table, health care continuing to stimulate growth by adding 55,000 positions and social assistance contributing to 18,000 jobs. However, the employment of the federal government has dropped by 12,000 additional positions and has decreased by 84,000 since January, reflecting the efforts of the Trump administration to reduce government staff. Manufacturing has lost 11,000 jobs while professional and commercial services reduced 14,000 positions, signaling broader economic mildness.
The most worrying was perhaps the increase in the unemployment rate by 4.2%, pulled in part by the people who continue to leave the active population, although a slower rate than the previous months. The combination of the low job creation and the increase in unemployment suggests that the labor market loses its momentum at a critical time. Economists note that reduced immigration flows mean that the economy now only needs 100,000 jobs per month to keep up with the rate of demographic growth in the working age, which makes the 73,000 figures particularly disturbing.
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