Fewer jobs were added to the U.S. economy in July than many had hoped, according to a report from the Bureau of Labor Statistics released on Friday. The report revealed that only 73,000 jobs were created last month, falling short of the Dow Jones estimate of 100,000. While the health care and social assistance sectors saw some growth, employment in the federal government continued to decline.
The unemployment rate held steady at 4.2 percent, with approximately 7.2 million people unemployed. This rate has remained in a tight range of 4.0 to 4.2 percent since May 2024, indicating little change in the labor market. Additionally, average hourly earnings for nonfarm payrolls rose by 0.3% in July.
Significant revisions were made to previous job reports for May and June. The July report noted that job growth had been overestimated by about 258,000. Specifically, May’s job growth was revised down from 144,000 to just 19,000, and June’s figures were adjusted from 147,000 to 14,000.
In response to the report, Republican National Committee Communications Director Zach Parkinson highlighted the positives, pointing out lower gas prices, decreasing inflation, and a stock market reaching record highs. He stated that the economy has added half a million jobs since January, and wage growth stands at 4%.
President Donald Trump also reacted to the news, reiterating his call for Federal Reserve Chair Jerome Powell to lower interest rates. He criticized Powell on social media, labeling him a "disaster" and urged for a rate drop, claiming that tariffs are bringing significant revenue into the country.
This jobs report comes shortly after news that the U.S. economy experienced a 3% growth in gross domestic product (GDP) in the second quarter. It arrives amid ongoing discussions about new tariffs set to take effect on August 7, while negotiations with major trading partners like Mexico and China continue.
