The July 2025 jobs report suggests a sharper slowdown in US job growth than previously thought, with economists citing President Donald Trump’s tariff policy as a key contributor. The data shows employers added just 73,000 jobs, below expectations, and the labor market is characterized by relatively few opportunities.
The slowdown is attributed to several factors, including high interest rates, immigration policy, and Trump’s on-again-off-again approach to tariffs, which creates uncertainty for businesses. This uncertainty leads many companies to pull back on hiring, further exacerbating the job market slump.
Economists point out that the job growth figures for May and June were initially underestimated, with a total of 258,000 fewer jobs added than expected. The revisions highlight a “very soft” job market, which is not disastrous but still weak, particularly when compared to historical averages.
The slowdown is also evident in the labor force participation rate, which has fallen to its lowest level since 2022. The unemployment rate rose to 4.2%, and nearly a quarter of unemployed Americans are long-term unemployed.
While layoffs remain near historical lows, the stagnant job market creates challenges for workers. With low layoffs, hiring, and quitting rates, there is little movement in and out of jobs, leading economists to describe the current environment as having a “high degree of stagnation.”
Source: https://www.cnbc.com/2025/08/01/us-job-market-jobs-report-july-2025.html