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 Closing post<\/p>\n Time to wrap up\u2026<\/p>\n Global markets have been rattled by a weak US jobs report which suggests Donald Trump\u2019s trade wars have hurt America\u2019s labor market<\/a>.<\/strong><\/p>\n The latest Non-Farm Payroll report showed that the US economy<\/a> added 73,000 jobs in July, far lower than expected, as the unemployment rate rose to 4.2% from 4.1% in June.<\/p>\n The Bureau of Labor also slashed the number of jobs added in recent months. May\u2019s jobs figure was revised down by 125,000, from 144,000 to 19,000, and June was revised down by 133,000, from 147,000 to 14,000 \u2013 a combined 258,000 fewer jobs than previously reported.<\/p>\n Here\u2019s the full story:<\/p>\n The weak jobs report rocked Wall Street, where the Dow Jones industrial average is down 496 points, or 1.1%, at 43,634 points.<\/p>\n US bond yields also fell sharply, as traders raised their bets on cuts to US interest rates this year.<\/p>\n Donald Trump repeated his demand for lower borrowing costs, claiming that Federal Reserve chair Jerome Powell was \u201ca stubborn MORON\u201d for not acting faster.<\/p>\n Stocks have fallen in London, and across Europe<\/a>.<\/p>\n Investors were already anxious, after Trump <\/strong>announced new tariffs on dozens of US trading partners.<\/p>\n Last night, as the latest deadline to reach deals approached, the US president signed an executive order imposing tariffs ranging from 10% to 41%.<\/p>\n Rates were set at 25% for India, 20% for Taiwan and 30% for South Africa<\/a><\/strong> <\/a>ahead of Trump\u2019s self-imposed deadline of 1 August for striking trade deals with countries worldwide.<\/p>\n Trump also extended the deadline for a tariff agreement with Mexico<\/strong> by another 90 days.<\/p>\n Our US Politics liveblog has full reaction to the jobs report, and the trade war:<\/p>\n Share<\/a><\/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\n
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![\"A](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/1754189476_336_538.jpg\")
Illustration: INGShare<\/a><\/p>\n![\"Lisa](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/1754189477_279_Lisa-OCarroll-byline-004.jpg\")
Lisa O\u2019Carroll<\/p>\n