US Job Growth Slows, Fed Rate Cut Discussed

U.S. job growth slowed markedly in July, with only 73,000 jobs added and previous months' gains revised down, resulting in an average of just 35,000 jobs per month over the last three months. The unemployment rate rose to 4.2%, and job growth was concentrated in healthcare and social assistance, while manufacturing and federal government jobs declined. Economists and Federal Reserve officials view these figures as evidence of a weakening labor market, partly due to uncertainty and higher costs from President Trump's tariff policies. Despite these challenges, average hourly earnings continue to rise, and there was a GDP rebound in the second quarter, although overall growth remains sluggish. The disappointing jobs numbers have prompted renewed discussions about possible Federal Reserve interest rate cuts as the central bank navigates slowing job growth alongside persistent inflation risks. The White House has downplayed the negative data, but analysts caution that the labor market's deterioration could indicate broader economic problems.