Labor report shows major slow down in hiring for the month of July

U.S. hiring has significantly slowed, with employers adding only 73,000 jobs in July, falling short of expectations. Revisions also revealed a substantial job loss of 258,000 for May and June. The unemployment rate edged up to 4.2% as more Americans left the labor force. Economists attribute this deterioration to President Trump's trade policies, including tariffs, and restrictive immigration measures. These policies have created uncertainty, leading businesses to hesitate and impacting employment growth. Manufacturers, in particular, have cut jobs, and federal government employment has also declined. Healthcare remains a sector with notable job gains, accounting for the majority of new positions. The overall job growth this year is considerably lower than in previous years, signaling a potential economic slowdown. The weak jobs report increases the likelihood of the Federal Reserve cutting interest rates to stimulate the economy. Factors like higher interest rates, tariffs, and reduced foreign worker availability are weighing on the job market. The rate of people quitting their jobs has also decreased, indicating less confidence in finding new employment.