‘The eye of the hurricane’: Why the U.S. job market has soured, economists say

## The Job Market Slowdown: Is the Hurricane Here?

The U.S. job market is showing signs of a significant slowdown, according to recent data. Here’s a breakdown of what the latest numbers reveal:

  • Weak Job Growth: The Bureau of Labor Statistics (BLS) reported that employers added only 73,000 jobs in July, significantly below expectations.
  • Downward Revisions: Job growth figures for May and June were sharply revised downward, revealing a much weaker job market than initially reported.
  • Below Population Growth: The current job growth rate is not keeping pace with population growth, suggesting the market is contracting.
  • Concentrated Opportunities: New job creation is primarily concentrated in the health care and social assistance sectors, indicating a lack of broad-based opportunities.
  • Impact of Tariffs: The recent imposition of new tariffs by the Trump administration is creating uncertainty for businesses, potentially leading to reduced hiring.
  • Other Headwinds: Immigration policies, cuts to the federal workforce, government spending, and higher interest rates are also contributing to the slowdown.
  • Falling Labor Force Participation: The labor force participation rate has dropped to its lowest level since 2022.
  • Rising Unemployment: The unemployment rate increased to 4.2% in July, up from 4.1% in June.
  • Long-Term Unemployment: The share of long-term unemployed individuals has increased.
  • Stagnation: While layoffs remain low, the overall environment is one of stagnation, with limited movement in and out of jobs.

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Source: https://www.cnbc.com/2025/08/01/us-job-market-jobs-report-july-2025.html

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