World Business Report US job growth hits pandemic lows as trade tensions rise
Aug 1, 2025
The US job market is facing a slowdown, adding only 73,000 jobs, the weakest since the pandemic. Trade tensions are escalating, with significant tariff hikes affecting Canadian goods and a broader impact on Southeast Asia. Meanwhile, markets are reacting to these employment figures with divided sentiments in bonds and stocks. There's also a trend towards remote work leading to quieter Fridays, highlighting shifting work dynamics in the post-pandemic landscape. The resignation of a Fed Governor could further influence monetary policy direction.
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Understanding US Job Growth Data
- The latest US job growth is the weakest since the pandemic, with large downward revisions from previous months.
- The Bureau of Labor Statistics revises data as more employer responses come in, not due to manipulation.
Factors Slowing US Hiring
- Slower US job growth is partly linked to tariff uncertainty causing businesses to delay hiring.
- Immigration reversal also reduces labor force growth, keeping unemployment rate steady despite fewer jobs added.
Market Reacts to Weak Jobs Report
- The bond market reacted strongly to weak US job data by pricing in higher chances of Federal Reserve rate cuts.
- Stock markets fell as investors viewed the labor report as a sign of recession risk.