Why a weaker jobs market is sparking recession fears

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U.S. employers added just 114,000 jobs in July as the unemployment rate rose to 4.3%. The weaker-than-expected report is adding to fears of an economic slowdown.

Job seekers attend a job fair in Sunrise, Fl., on June 26, 2024. Employers added only 114,000 jobs last month, well below expectations, raising fears about the economy.

Employers added just over half as many jobs last month as they had, on average, in the twelve previous months. Job gains for May and June were also revised downwards by a total of 29,000. Some parts of the economy are clearly limping. Factories added just 1,000 jobs in July. The information sector, which includes publishing, broadcasting and web hosting, was the biggest loser last month, shedding 20,000 jobs.

 

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