Danger signs flash in US job market as hiring slows
The Labour Department's employment report for July showed US employers added just 73,000 jobs, and revisions for May and June showed hiring was weaker in May and June that initially thought.
President Donald Trump immediately renewed his attack on Fed Chair Jerome Powell, calling him a 'disaster' after the Fed on Wednesday paused cutting interest rates.
'Too Little, Too Late. Jerome 'Too Late Powell is a disaster. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!' Mr Trump wrote on Truth Social.
Economists polled by Reuters had thought July's jobs number would be 110,000. The unemployment rate ticked up to 4.2 per cent.
The dollar weakened and stock futures slumped.
Brian Jacobsen, chief economist at Annex Wealth Management, said Mr Powell might have lowered interest rates on Wednesday if he 'knew then what he knows now'.
'There's no way to pretty-up this report. Previous months were revised significantly lower where the labour market has been on stall-speed,' he said, predicting a rate cut at the next Fed meeting.
The unexpectedly weak report raises questions about the health of the job market and the economy amid Mr Trump's radical efforts to reshape US trade policy. Late on Thursday, he unveiled hefty tariffs on imports from across the globe.
'President Trump is using tariffs as a necessary and powerful tool to put America First after many years of unsustainable trade deficits that threaten our economy and national security,' the White House said.
Also weighing on the economy is an anticipated drop in foreign workers as Mr Trump pushes ahead to efforts to deport immigrants in the US without legal authorisation, though the President has suggested farmers and hoteliers might be spared wholesale round-ups of their staff.
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