US job creation revised sharply lower
Newsflash: Employment growth across America has been much weaker than previously thought over the last three months – a sign that the US labor market may be cooling.
The newly released payroll figures show that non-farm employment in July increased by only 73,000 jobs, falling well short of economists’ forecast of 110,000. Even more striking are substantial downward adjustments to May and June’s data: May’s job gain was slashed from 144,000 to just 19,000, and June’s from 147,000 to 14,000, according to the Bureau of Labor Statistics (BLS).
Taken together, these revisions mean the US added 258,000 fewer positions in May and June than originally reported, underscoring a notable slowdown in hiring. Reflecting this softer pace, the unemployment rate ticked up from 4.1% in June to 4.2% in July. Analysts suggest that the drag may stem from lingering uncertainties tied to President Trump’s trade tariffs and from cost-cutting measures such as the DOGE program advocated by Elon Musk.
The BLS noted that hiring gains continued principally in the health care and social assistance sectors, while federal government payrolls declined further. These trends highlight a labor market that, while still expanding, is losing momentum after a period of robust job creation.
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