U.S. employers likely added 175,000 jobs in July as labor market cools gradually

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Inflation News

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The U.S. job market isn’t sizzling hot anymore. Companies aren’t hiring the way they were a year or two ago. But they aren’t slashing jobs either. This is just what the inflation fighters at the Federal Reserve want to see: a gradual slowdown in hiring that eases pressure on companies to raise wages – but avoids the pain of widespread layoffs.

FILE - A construction worker carries scaffolding parts on March 14, 2024, in Boston. On Friday, August 2, 2024, the U.S. government issues its July jobs report. the way they were a year or two ago. But they aren’t slashing jobs either, and American workers continue to enjoy an unusual degree of job security.want to see: a gradual slowdown in hiring that eases pressure on companies to raise wages — but avoids the pain of widespread layoffs.

From January through June this year, the economy has generated a solid average of 222,000 new jobs a month, down from an average 251,000 last year, 377,000 in 2022 and a record 604,000 in 2021 when the economy bounded back from COVID-19 lockdowns.Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 yearsThe economy is weighing heavily on voters’ minds as they prepare for the presidential election in November.

Many economists believe that today’s rising unemployment rates reveal an influx of new workers into the American labor force who sometimes need time to find work, rather than a worrisome increase in job losses. “Once you have a certain momentum going to the downside, it often can get going,’’ Sahm said. The Sahm rule, she says, is “not working like it usually does, but it shouldn’t be ignored.’’

 

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