U.S. Job Growth Plummets in July; Stock Market Reacts to Tariff Woes

U.S. Employment Growth Stagnates, Stock Markets React Negatively

The recent job growth data released indicates a troubling trend in the U.S. employment landscape, with only 73,000 new jobs added in July. This number is considerably lower than what analysts had anticipated, signaling potential economic challenges ahead.

Moreover, the situation has been exacerbated by the Bureau of Labor Statistics revising earlier job growth estimates for May and June to significantly lower figures. Specifically, the previously reported additions of 140,000 to 150,000 jobs were adjusted down to just 19,000 and 14,000, respectively. Senior economist Danny Court from Elliott D. Pollack and Company remarked, “We went from, you know, May and June initially reporting, you know, 140 to 150 thousand jobs, down to just 19,000 jobs and then 14,000 jobs. So, you know, as close to zero as you could possibly get.” He noted that such minimal employment growth has not been observed since the pandemic struck.

This disappointing report coincided with the implementation of new tariffs by President Donald Trump, which have raised concerns in financial markets, leading to a notable decline in stock prices. In light of the poor employment figures, President Trump also made headlines by dismissing the head of the Bureau of Labor Statistics, alleging, without supporting evidence, that the reported data was “rigged.”