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

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Economy News

Labor,Compensation And Benefits,Jobs And Careers

The U.S. job market isn’t sizzling hot anymore

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. Still, Sahm, now chief economist at the investment firm New Century Advisors, said that this time “a recession is not imminent’’ even if unemployment crosses the Sahm Rule threshold.

Nonetheless, Sahm remains concerned about the hiring slowdown, noting that a deteriorating job market can feed on itself.

 

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