‘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, after showing signs of weakening, may have finally hit a significant slowdown. Recent data paints a concerning picture, suggesting a contraction in job growth. Here’s a breakdown:

• Weak July Numbers: The Bureau of Labor Statistics reported only 73,000 jobs added in July, significantly below the expected amount 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 thought.
• Concentrated Growth: New job creation is primarily concentrated in healthcare and social assistance, 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.
• Concerning Indicators: The labor force participation rate has fallen, and the unemployment rate has risen. The share of long-term unemployed has also increased.
• Stagnation: While layoffs remain low, a combination of low hiring and quitting rates creates challenges for job seekers, leading to a high degree of stagnation in the job market.

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