American employers added only 73,000 jobs in July, according to the Associated Press, and Labor Department revisions showed that May and June hiring was significantly weaker than previously reported.
The unemployment rate rose to 4.2%.
The Labor Department reported Friday that revisions took a shocking 258,000 jobs off May and June payrolls. The job market deterioration largely stems from uncertainty over President Donald Trump’s shifting tariff policies.
Among subtle signs that the labor market has been weakening is the rise in young people struggling to enter the job market. Unemployment for college graduates aged 22-27 years old to 5.8% in March — the highest since 2012, excluding the pandemic.
Employers added an average of 130,000 jobs per month through June, down 23% from last year’s hiring and 68% below the 2021-23 average.
Apart from tariffs, other factors weighing on the job market include higher interest rates used by the Federal Reserve to fight inflation and an anticipated drop in foreign workers as the president’s deportation plans proceed.
