The latest non-farm payroll, just released, shows that US employment rose by just 73,000 in July, rather weaker than the 110,000 new jobs expected.<\/p>\n
But the big shock comes in the latest revisions to payrolls, with previous estimates for both May and June being revised sharply lower.<\/p>\n
The Bureau of Labor Statistics now estimates that just 19,000 new jobs were created in May, 125,000 fewer than the 144,000 previously estimated.<\/p>\n
June\u2019s data has been revised down too – showing that just 14,000 new jobs were created, not the 147,000 reported a month ago<\/a>.<\/p>\n That means 258,000 fewer jobs were created in May and June than previously thought.<\/strong><\/p>\n The US unemployment rate has risen to 4.2% from 4.1% in June.<\/p>\n This surprisingly weak data may be a sign that Donald Trump\u2019s trade wars, and the associated uncertainty, have cause more damage to the US economy than previously thought. There could also be an impact from cost-cutting DOGE program pushed by Elon Musk.<\/p>\n The BLS says:<\/p>\n Employment continued to trend up in health care and in social assistance. Federal government continued to lose jobs.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a008.48 EDT<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n There\u2019s been a heavy sell-off across European markets too, amid trade war fears and jitters about the US economy.<\/strong><\/p>\n Germany\u2019s DAX<\/strong> was down around 2.5% as trading ended, with the situation in Paris even worse \u2013 France\u2019s CAC 40<\/strong> has shed 2.85%.<\/p>\n Italy\u2019s FTSE MIB<\/strong> lost 2.55%.<\/p>\n Share<\/a><\/p>\n Updated at\u00a011.48 EDT<\/p>\n FTSE 100’s lowest close in over a week<\/p>\n Tariff anxiety, and the weak US jobs report, have dragged London\u2019s stock market down to its lowest closing level in over a week.<\/strong><\/p>\n The FTSE<\/strong> 100 index of blue-chip shares has ended the day down 64 points, or -0.7%, at 9,068 points. That takes it away from record highs set yesterday, and is the lowest close since 23 July.<\/p>\n Banks were among those worst hit, pounded by expectations of interest rate cuts, along with some mining companies.<\/p>\n Share<\/a><\/p>\n Updated at\u00a011.42 EDT<\/p>\n This post from Harvard professor Jason<\/strong> Furman<\/strong>, who chaired Barack Obama\u2019s Council of Economic Advisers, shows how US jobs creation has been weaker this year than in 2023 and 2024:<\/p>\n The jobs slowdown is here with 73K jobs in July & large downward revisions to May & June bringing the average to 35K\/month.<\/p>\n Not quite as bad as you might think because steady-state job growth is much lower in a low net immigration world but unemployment still gradually rising. pic.twitter.com\/rYSFlI38MR<\/a><\/p>\n \u2014 Jason Furman (@jasonfurman) August 1, 2025<\/a><\/p><\/blockquote>\n Share<\/a><\/p>\n As well as demanding interest rate cuts (again) today<\/a>, Donald Trump also called Fed chair Jerome Powell \u201ca stubborn MORON\u201d, and urged top Federal Reserve officials to seize control if Powell fails to cut borrowing costs.<\/p>\n Here\u2019s <\/a>the full story:<\/p>\n Share<\/a><\/p>\n Stephen Miran, who chairs Donald Trump\u2019s Council of Economic Advisors, has conceded that July\u2019s US jobs report \u201cisn\u2019t ideal\u201d.<\/strong><\/p>\n But Miran also insists that better times are ahead.<\/p>\n Speaking to CNN, Miran<\/strong> suggests that more than half the downward revisions to employment growth in May and June (which cut employment totals by 258,000) were due to \u201cquirks of the seasonal adjustment process\u201d.<\/p>\n He also attributes some of the drop in employment to the fact the White House has \u201celiminated about a million jobs for foreign born workers\u201d, according to a transcript provided by CNN.<\/p>\n Miran<\/strong> adds:<\/p>\n Finally, we\u2019ve been hearing a lot about uncertainty over the last few months, but that\u2019s all resolved now. We \u2013 we\u2019re creating trade deals left and right that have unlocked enormous new potential for the American economy. The tariff uncertainty is fading away. Tariff rates are settling in. The one big, beautiful bill is now law. There\u2019s no more uncertainty over the tax bill either, over the \u2013 over potentially the biggest tax hike in American history. And on top of that, there are such strong, powerful incentives in the one big, beautiful bill for investment. Things like full expensing on investment in equipment, in R&D, on new factory structures. These are huge.<\/p>\n So, it\u2019s all going to get much, much better from here.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a010.45 EDT<\/p>\n A key measure of US job creation is its weakest since early in the Covid-19 pandemic, reports Bloomberg\u2019s Lisa Abramowicz<\/strong>:<\/p>\n Share<\/a>US manufacturers blame tariffs as activity falls<\/p>\n More bad news: economic activity in the US manufacturing sector contracted in July for the fifth month in a row.<\/strong><\/p>\n The latest poll of purchasing managers at US factories, just released by the Institute of Supply Management (ISM), shows that new orders and backlogs contracted in July, suggesting a weakening in demand.<\/p>\n Prices also rose \u2013 perhaps a sign of the impact of tariffs? \u2013 while both exports and imports contracted.<\/p>\n This pulled the ISM\u2019s manufacturing PMI down to 48% in July, from 49% in June.<\/p>\n Susan<\/strong> Spence, chair of the ISM\u2019s<\/strong> manufacturing business survey committee:, says:<\/p>\n In July, US manufacturing activity contracted at a faster rate, with declines in the Supplier Deliveries and Employment Indexes contributing as the biggest factors in the 1-percentage point loss of the Manufacturing PMI.<\/p>\n<\/blockquote>\n Some companies blamed the disruption and confusion caused by Donald Trump\u2019s trade wars.<\/p>\n One, in the \u201capparel, leather and allied products\u201d sector, said:<\/p>\n These tariff wars are beginning to wear us out. It\u2019s been very difficult to forecast what we will pay in duties and calculate any cost savings we\u2019ve had this year. Also, tariffs have disrupted our customs import bond.<\/p>\n There is zero clarity about the future, and it\u2019s been a difficult few months trying to figure out where everything is going to land and the impact on our business. So far, tremendous and unexpected costs have been incurred.<\/p>\n<\/blockquote>\n A second, in the electrical equipment, appliances and components sector, reported:<\/p>\n Tariffs are causing complete uncertainty around sourcing strategies. A sit-and-wait game for now.<\/p>\n<\/blockquote>\n A third company, though, warned that higher interest rates were depressing the construction industry, while a fourth reported strong sales growth driven by datacenter construction.<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.47 EDT<\/p>\n A cut to US interest rates in September looks \u201cincreasingly likely\u201d, argues James<\/strong> Knightley<\/strong>, ING\u2019s<\/strong> chief international economist.<\/p>\n Knightley <\/strong>says:<\/p>\n It is impossible to deny that the July jobs report is weak with non-farm payrolls rising 73k versus 104k consensus, but the most striking thing is the huge 258k downward revision to the past two months of data. June job gains, which were originally 147k, are now 14k and May\u2019s initially reported gain of 144k is now 19k.<\/p>\n This puts a completely different light on what has been happening in the US economy post the 2 April \u2018Liberation Day\u2019 announcements.<\/p>\n<\/blockquote>\n Updated at\u00a010.15 EDT<\/p>\n Some countries get reprieve in latest Trump tariffs Lesotho isn\u2019t the only country to receive a reprieve from Donald Trump<\/a>.<\/strong><\/p>\n As flagged earlier (see here<\/a>), Lesotho<\/strong> was facing 50% tariffs on 2 April, an existential threat to its textile industry, but came out on Friday with a 15% rate.<\/p>\n That\u2019s a relief for a state which Trump said \u201cnobody has ever heard of\u201d when he halted USAID earlier this year<\/a>.<\/p>\n Also getting a drastic reduction in tariffs are Madagascar<\/strong>, down from 47% on 2 April to 15% on 1 August, and Botswana<\/strong>, down from 37% to 15%<\/p>\n Liechtenstein<\/strong>, the wealthy European state best known as a financial centre, has seen rates slashed from 37% to 15%, while the Falkland Islands have gone from 41% to 10%.<\/p>\n Cambodia<\/strong> went from 49% to 19%, while Iraq<\/strong> only got a four-point reduction, from 39% to 35%<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.17 EDT<\/p>\n Wall Street opens with a bump<\/p>\n Ding ding goes the opening bell on the New York <\/strong>Stock <\/strong>Exchange \u2013 the signal for an early burst of selling!<\/strong><\/p>\n The main US stock indices have fallen sharply at the start of trading, as investors react to the flurry of tariffs announced last night and today\u2019s weak US jobs report.<\/p>\n The Dow<\/strong> Jones<\/strong> industrial<\/strong> average<\/strong> (which contains 30 large US companies) has fallen by 1.1% at the start of trading, shedding 501 points to 43,629.<\/p>\n The broader S&P 500<\/strong> index is down 1.2%, while the tech-focused Nasdaq<\/strong> has lost 1.5% \u2013 with Amazon falling almost 7% after issuing disappointing forecasts last night<\/a>.<\/p>\n Today\u2019s weak payroll report has punctured the narrative of a resilient US economy, says Kathleen Brooks, <\/strong>research director at XTB, <\/strong>explaining:<\/p>\n Tariffs have yet to meaningfully kick in, so the fact that jobs growth has been anemic at this early stage is worrying. As we start a new month and end the week, a new narrative about the US economy is emerging. It is one where the labour market is rapidly softening, where wage growth remains strong, which could pressurize corporate margins down the line, and where the US economy needs interest rate cuts.<\/p>\n For now, that narrative is bad news for global stocks.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a009.42 EDT<\/p>\n Most of the 73,000 jobs created across the US economy in July were in healthcare.<\/strong><\/p>\n Today\u2019s non-farm payroll report shows that healthcare added 55,000 jobs in July, above the average monthly gain of 42,000 over the prior 12 months. That includes 34,000 in \u201cambulatory health care services\u201d and 16,000 at hospitals.<\/p>\n Social assistance employment rose by 18,000.<\/p>\n But on the other side of the ledger, federal government employment levels fell by 12,000 in July and are down by 84,000 since reaching a peak in January.<\/p>\n That won\u2019t give a full insight into Doge-related job cuts, though, as employees on paid leave or receiving ongoing severance pay are counted as employed.<\/p>\n There was little change in employment levels in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services, the Bureau for Labor Statistics<\/strong> adds.<\/p>\n Share<\/a><\/p>\n Updated at\u00a009.43 EDT<\/p>\n US jobs report: what the experts say<\/p>\n Today\u2019s non-farm payrolls report does not paint a pretty picture, points out Nicholas Hyett, <\/strong>investment manager at investment service Wealth Club:<\/strong><\/p>\n July\u2019s job creation is slower than expected, but the bigger news is the major revision to May and June\u2019s job numbers which are down a combined 258,000. If Fed governors were looking for reasons to cut interest rates, this is one.<\/p>\n The problem is that for all the extra clarity, these numbers still only show what\u2019s happening in the rearview mirror. In hindsight, the journey so far has been bumpier and more precarious that it seemed at the time, but the road ahead is still clouded in fog. Just today, President Trump has reignited the global trade war with major knock-on effects for stock markets and the global economy. Investors and policymakers will be stuck slaloming through unexpected obstacles for some time yet.<\/p>\n<\/blockquote>\n Seema Shah, <\/strong>chief global strategist at Principal Asset Management, <\/strong>fears the US jobs market will keep weakening:<\/p>\n Not only was this a much weaker than forecast payrolls number, the monster downward revisions to the past two months inflicts a major blow to the picture of labor market robustness. What\u2019s more concerning is that with the negative impact of tariffs only just starting to be felt, the coming months are likely to see even clearer evidence of a labor market slowdown.<\/p>\n Of course, with Powell emphasising his focus on the unemployment rate which has only ticked up to 4.2%, perhaps it is too early to press the panic button. The shrinking of labor supply is somewhat offsetting the weakness in labor demand, keeping the labor market in an uneasy state of equilibrium. Even so, the sheer weakness of today\u2019s payrolls number means that Powell will have to take notice. The odds of a September cut just took a big leap higher.<\/p>\n<\/blockquote>\n Thomas<\/strong> Ryan<\/strong>, North America economist, agrees that today\u2019s weak jobs report will embolden the dovish policymakers at the Federal Reserve who want to cut interest rates, saying:<\/p>\n The weak 73,000 rise in non-farm payrolls in July, combined with large downward revisions to May and June\u2019s gains and an uptick in the unemployment rate to 4.2%, will strengthen the case for those on the [federal open market committee of the Federal Reserve] pushing for imminent interest rate cuts.<\/p>\n<\/blockquote>\n [Reminder, the Fed left rates on hold on Wednesday, in a split vote<\/a>.]<\/p>\n Share<\/a><\/p>\n Updated at\u00a009.23 EDT<\/p>\n This chart shows just how bad the last three months have been for job creation in the US:<\/p>\n A chart showing US non-farm payroll data<\/a>Share<\/a>Trump demands interest rate cut<\/p>\n Donald Trump has again repeated his plea for the US Federal Reserve to cut interest rates.<\/strong><\/p>\n Shortly after today\u2019s weak jobs report was released, Trump<\/strong> posted on his Truth Social site:<\/p>\n Too Little, Too Late. Jerome \u201cToo Late\u201d Powell is a disaster. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!<\/p>\n<\/blockquote>\n [Factcheck: tariffs are paid by the company or individual importing goods into the US. They only way they can \u201cbring in dollars\u201d is if the exporting company lowers its prices, to keep its goods competitive, meaning the importer doesn\u2019t suffer a relative loss once it has paid the tariff.]<\/p>\n Share<\/a><\/p>\n Updated at\u00a009.20 EDT<\/p>\n US dollar slides after weak jobs report<\/p>\n The US dollar is being hammered on the foreign exchange markets, as today\u2019s weak jobs report alarms traders.<\/strong><\/p>\n The dollar index, which tracks the greenback against a basket of currencies, is now down 0.9% today.<\/p>\n The euro has surged by almost a cent and a half, to $1.154, while the pound is up three-quarters of a cent at $1.328.<\/p>\n Share<\/a><\/p>\n Here\u2019s snap reaction from Heather<\/strong> Long<\/strong>, chief economist at credit union Navy<\/strong> Federal<\/strong>:<\/p>\n This is a gamechanger jobs report. July job gains were a mere 73,000 Note: 75% of the jobs in July came from healthcare<\/p>\n This puts a September rate cut from the Federal Reserve back on the\u2026 pic.twitter.com\/AgmMJNAvuB<\/a><\/p>\n \u2014 Heather Long (@byHeatherLong) August 1, 2025<\/a><\/p><\/blockquote>\n Share<\/a><\/p>\n Today\u2019s surprisingly weak US jobs report is causing ructions in the market.<\/strong><\/p>\n The yields, or interest rates, on US government bonds are falling sharply \u2013 a sign that investors are piling into bonds because they expect cuts to US interest rates to support the economy, or are simply seeking a safe-haven asset.<\/p>\n Reuters has the details:<\/p>\n US. Treasury yields fell after data showed on Friday the world\u2019s largest economy created fewer jobs than expected in July, increasing the odds that the Federal Reserve will resume cutting interest rates at the September meeting.<\/p>\n U.S. two-year yields, which are tied to the Fed\u2019s monetary policy, dropped 14.2 bps to 3.811%.<\/p>\n<\/blockquote>\n UK government bond yields \u2013 which track the cost of Britain\u2019s government borrowing \u2013 have also dropped.<\/p>\n Share<\/a>US job creation revised sharply lower<\/p>\n Newsflash: Employment growth across America has been much weaker than previously thought over the last three months \u2013 a sign that the US labor market may be cooling.<\/strong><\/p>\n The latest non-farm payroll, just released, shows that US employment rose by just 73,000 in July, rather weaker than the 110,000 new jobs expected.<\/p>\n But the big shock comes in the latest revisions to payrolls, with previous estimates for both May and June being revised sharply lower.<\/p>\n The Bureau of Labor Statistics now estimates that just 19,000 new jobs were created in May, 125,000 fewer than the 144,000 previously estimated.<\/p>\n June\u2019s data has been revised down too – showing that just 14,000 new jobs were created, not the 147,000 reported a month ago<\/a>.<\/p>\n That means 258,000 fewer jobs were created in May and June than previously thought.<\/strong><\/p>\n The US unemployment rate has risen to 4.2% from 4.1% in June.<\/p>\n This surprisingly weak data may be a sign that Donald Trump\u2019s trade wars, and the associated uncertainty, have cause more damage to the US economy than previously thought. There could also be an impact from cost-cutting DOGE program pushed by Elon Musk.<\/p>\n The BLS says:<\/p>\n Employment continued to trend up in health care and in social assistance. Federal government continued to lose jobs.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a008.48 EDT<\/p>\n Donald Trump\u2019s tariff playbook is becoming clearer following last night\u2019s announcement, says Paul<\/strong> Diggle<\/strong>, chief economist at Aberdeen<\/strong> Investments<\/strong>.<\/p>\n This playbook consists of:<\/p>\n A 10% global baseline tariff<\/p>\n<\/li>\n A rate of at least 15% on countries with goods trade deficits with the US<\/p>\n<\/li>\n An additional 40% on goods transhipped to evade higher rates elsewhere<\/p>\n<\/li>\n A variety of new country-specific rates on smaller trading partners, such as 20% on Taiwan or 39% on Switzerland<\/p>\n<\/li>\n Trump has also announced a 35% tariff on Canada, although the carve-out for USMCA-compliant trade remains [that\u2019s the United States-Mexico-Canada Agreement<\/a>]<\/p>\n<\/li>\n<\/ul>\n Diggle adds that there are still plenty of uncertainties, including where US-China tariffs settle\u2026.<\/p>\n\n
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Illustration: INGShare<\/a><\/p>\n![\"Lisa](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/1754063595_942_Lisa-OCarroll-byline-004.jpg\")
Lisa O\u2019Carroll<\/p>\n\n
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The labor market now looks a lot weaker than expected. <\/p>\n
June just 14,000
May just 19,000<\/p>\n\n
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