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

## Job Market Slowdown Confirmed: Is the US Economy Hitting a Wall?

The latest jobs report paints a concerning picture of the US job market, suggesting a significant slowdown. Here’s a breakdown of the key takeaways:

  • **Weak Job Growth:** The US economy added only 73,000 jobs in July, significantly below the 80,000-100,000 needed to keep pace with population growth.
  • **Downward Revisions:** Job growth figures for May and June were sharply revised downward, revealing a much weaker job market than initially reported.
  • **Soft Market:** Economists describe the job market as “soft,” with weak numbers not typical of a strong economy.
  • **Concentrated Growth:** New job creation is largely focused in healthcare and social assistance, indicating a lack of broad-based opportunities.
  • **Tariff Impact:** The Trump administration’s new tariffs are expected to raise prices, pressure business profits, and create uncertainty, potentially leading to hiring slowdowns.
  • **Other Headwinds:** Immigration policies, cuts to the federal workforce, government spending, and higher interest rates are also contributing to the slowdown.
  • **Falling Participation:** The labor force participation rate has fallen to its lowest level since 2022.
  • **Rising Unemployment:** The unemployment rate increased to 4.2% in July.
  • **Long-Term Unemployment:** The share of long-term unemployed Americans has increased.
  • **Stagnation:** Low layoffs, hiring, and quitting rates create challenges for job seekers, leading to a high degree of stagnation.

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

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