Now Reading: US employers cut 23,000 jobs in July; prior hiring revised down
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US employers cut 23,000 jobs in July; prior hiring revised down
US nonfarm payrolls fell by 23,000 in July, a sharp miss of the Dow Jones forecast of an 83,000 gain. The Bureau of Labour Statistics also slashed 103,000 jobs from the combined…
The Story in Brief
US nonfarm payrolls fell by 23,000 in July, a sharp miss of the Dow Jones forecast of an 83,000 gain. The Bureau of Labour Statistics also slashed 103,000 jobs from the combined May and June counts, deepening concerns that the American labour market is weakening faster than earlier thought. The unemployment rate dropped to 4.1 per cent from 4.2 per cent, but only because 264,000 people left the workforce, the participation rate slid to 61.4 per cent, the lowest since February 2021.
The downturn was led by cuts in local government education, leisure and hospitality, and retail. Private payrolls eked out a 30,000 rise, led by healthcare. The Hindustan Times and New Indian Express both highlight the Iran war's squeeze on energy prices, while Times Now notes traders now doubt a September Fed rate hike. Average hourly earnings grew 3.2 per cent year-on-year, the slowest pace in over five years.
The Indian Opinion
Three narratives are competing: the White House credits tariff-driven manufacturing gains, others blame the Iran war, and some see a natural cooling after years of low layoffs. None alone explains a 23,000 employment drop. The real story may be structural: fewer prime-age workers are available, and technology is reducing headcount needs. The test to watch is not the monthly payrolls number but the participation rate. If it stays below 62 per cent, job gains will remain tepid regardless of geopolitics or policy.
Sources (3): timesnownews.com, hindustantimes.com, newindianexpress.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
