U.S. Job Gains Slow, Healthcare Leads Growth

U.S. job growth slowed sharply in July 2025, with only 73,000 jobs added and the unemployment rate rising to 4.2%, marking the weakest three-month average for job gains since the early pandemic. May and June job gains were revised down by a combined 258,000 jobs. Several sectors, notably manufacturing and retail, saw job losses, while healthcare was the main source of job gains. Economists attribute the slowdown in part to President Trump’s trade policies and newly implemented tariffs, which are starting to affect business sentiment and consumer prices. Wage growth increased by 0.3% in July and continues to outpace inflation, but concerns about the economy remain. The weak jobs data have increased market expectations for a Federal Reserve interest rate cut as soon as September.