Why the U.S. job market has soured

The US labor market shows a gradual signs of slimming. However, the new federal data released on Friday shows that it may have hit a long -awaited wall.

“We are in the eyes of the hurricane in the eyes,” Daniel Zhao wrote in a note.

“After months of warning signs, the July Affairs report confirms that the slowdown is not just approaching – here.”

Employers added only 73,000 jobs in July. reported Friday. This installment is less than expected.

Değil Economists usually think that the US economy should add approximately 80,000 to 100,000 work per month to keep up with the population growth, Laura North American Economic Research Director Laura Ullrich is indeed in the business field.

The July figure shows that the labor market does not keep up with the population growth and therefore contract.

Economists, more than the July issue: May and June, business growth figures are much weaker than initially thought, he said.

BLS revised the business growth figures sharply downwards for those months, in May (less than 144,000) and 19,000 in June (from 147,000) to 14,000.

When they all said, employers added 258,000 less jobs than initially thought.

Economists said that these monthly revisions are typical because BLS collects additional data from enterprises and government agencies, but these arrangements are unusual.

Why they said.

“Indeed, it shows a very soft labor market, Ul Ullrich said. “This is not a disaster. Nevertheless, these are very weak job numbers” and is not something he can expect in a powerful economy.

Economists said the numbers could be revised again in August.

Taking into account the reviewed data, the average business growth in the last three months was 35,000. On the contrary, business growth average In the first three months of 2025, 111,000 per month.

Economists mean that new jobs are concentrated in health and social assistance sectors, that is, opportunities are not widely based.

“Zhao from Glassdoor tells a completely different story about the labor market,” he said in an interview.

“We were under the impression that the labor market was surprisingly resistant to economic winds such as tariffs.” He said.

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President Donald Trump announced new tariffs on Thursday and put new import tasks on several trade partners ranging from 10% to 41%.

Tariffs are taxes paid by US companies for the products imported.

Economists, when tariffs are kept in the long run in the long term, usually increases prices and input costs for consumers, increasing the profits for many businesses, he said. In addition, Trump’s approach to tariffs repeatedly, creating uncertainty for businesses, led to the withdrawal of many of them to be recruited.

. National recruitment rate Since 2014, the Covid-19 pandema is out of the first days.

“It is difficult to make a decision or change in the face of much uncertainty.” He said.

Tariff policy combines other winds, such as the migration policy that reduces the amount of existing workers, federal labor and government expenditures and higher interest rates.

A silver liner for workers: layoffs stay close Historical abortions.

However, low dismissal, recruitment and release It creates difficulties for job seekers.

“There is a high degree of recession right now, Ul Ullrich said. “There is not much move in and outside of business.”