U.S. July Job Growth Misses Estimates, May-June Figures Revised Down Sharply

The U.S. labor market showed significant weakness in July, with only 73,000 jobs added, well below economists' expectations, and major downward revisions to May and June payroll data reduced previous job gains by 258,000. The unemployment rate remained steady at 4.2%, reflecting a slight uptick from June, while job growth was primarily concentrated in the health care and social assistance sectors. Goods-producing industries, including construction and manufacturing, continued to contract, and the federal government shed 12,000 jobs. The disappointing job figures and slowing employment growth have raised concerns about the economy's trajectory, prompting some economists to anticipate Federal Reserve interest rate cuts later in the year to support growth. Additionally, the weak labor data contributed to a depreciation of the U.S. dollar against the euro and the British pound amid worries about the broader economic slowdown influenced by factors such as high interest rates and increased tariffs. President Trump recently increased tariffs on certain countries and set a higher rate on Canada, citing border security concerns, which may also impact economic conditions.