US Adds 73,000 Jobs July Below Expectations Unemployment Holds 4.2%

The U.S. economy added only 73,000 jobs in July, falling short of expectations and marking a significant slowdown in job growth, with the unemployment rate steady at 4.2%. Revisions to May and June payrolls reduced previous job counts by a combined 258,000, signaling a weakening labor market amid President Donald Trump's aggressive trade policies and tariff impositions on multiple countries. Economists warn that the trade tensions and tariffs are unsettling businesses and may lead to a harder economic landing, as reflected in the Dow's sharp decline following the jobs report. The disappointing employment data also triggered a drop in the U.S. dollar, with markets increasing bets on Federal Reserve rate cuts, potentially as soon as September. While some officials and supporters credit the Trump administration with positive economic results, mainstream economists emphasize the risks associated with the ongoing trade disruptions and their impact on the labor market and broader economy. The evolving economic conditions are causing increased market volatility and uncertainty about future growth.