The US Lost 23,000 Jobs in July
The Labor Department reported Friday that American nonfarm employers cut 23,000 jobs in July, a drop some attribute to employers’ wariness to hire amidst tariffs and the costs of the war in Iran. At the same time, the unemployment rate fell slightly, from 4.2 percent to 4.1 percent, a drop economists attributed not to more […]
The US economy shed 23,000 jobs in July, according to the Labor Department's latest report. This decline may be attributed to employers' cautious hiring stance due to tariffs and Iran's ongoing conflict. However, the unemployment rate still dipped slightly, from 4.2% to 4.1%, primarily because fewer individuals joined the workforce rather than more people finding employment.
Angela Hanks, a senior policy analyst at the Century Foundation, explained that the rate's drop is largely due to stagnant labor force growth, not increased job opportunities. White House economic advisor Kevin Hassett pointed to a surge in construction jobs as a positive factor, but experts suggest that data centers are the main catalyst behind nonresidential construction growth this year, with many of these positions being temporary.
Hassett suggested that the recent job losses are likely seasonal, citing a sharp decline in hospitality jobs following the World Cup. He did not mention healthcare, which has been the primary source of job growth in the private sector over the past few years, contributing to over 75% of all private-sector job gains since 2023. Despite these concerns, administration officials remain optimistic about the upcoming report, with Hassett stating that the administration is "very bullish" and emphasizing that the next month's numbers will provide a clearer picture.
However, Don Beyer, a senior House Democrat on the Joint Economic Committee, remains skeptical, describing the report as "deeply alarming" and suggesting that President Trump's policies are significantly harming the American economy. He noted that job creation has seemingly halted and businesses are failing to hire at the pace needed for a robust economy.
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