The US economy is facing a serious challenge in its labor market. This sector deserves immediate attention! According to Bloomberg, job growth in the United States has slowed significantly over the past three months. Experts believe this points to a cooling labor market amid widespread economic uncertainty.
Reports show that in July, the number of jobs in the US increased by just 73,000. Meanwhile, figures for the previous two months were sharply revised downward by nearly 260,000. Over the past three months, average job growth in America has not exceeded 35,000, a record low since the start of the COVID-19 pandemic. In addition, the unemployment rate rose to 4.2% in July.
Current macroeconomic data suggests that the US labor market has clearly weakened. “The data sends a stronger signal that the labor market is weakening more notably. Not only is job growth cooling markedly and unemployment rising, it’s harder for unemployed Americans to get a job, and wage gains have largely stalled,” Bloomberg summarizes.
The market responded to this report with a sharp drop in the US dollar. The Dollar Index (DXY) traded near 99.00, losing over 1%. Against this backdrop, Dow Jones and S&P 500 futures fell by nearly 1%, while Nasdaq 100 contracts dropped more than 1% in premarket trading.
Following these alarming figures, market participants priced in at least two Federal Reserve rate cuts in 2025. Previously, the Fed had left borrowing costs unchanged.
