{"id":32855,"date":"2025-07-02T15:01:12","date_gmt":"2025-07-02T15:01:12","guid":{"rendered":"https:\/\/www.europesays.com\/us\/32855\/"},"modified":"2025-07-02T15:01:12","modified_gmt":"2025-07-02T15:01:12","slug":"shock-job-report-shows-worst-employment-drop-in-years-in-massive-blow-to-trump-economy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/32855\/","title":{"rendered":"Shock job report shows worst employment drop in years in massive blow to Trump economy"},"content":{"rendered":"

By ALICE WRIGHT FOR DAILYMAIL.COM<\/a> <\/p>\n

Published: 09:01 EDT, 2 July 2025 | Updated: 10:59 EDT, 2 July 2025 <\/p>\n

Private sector hiring shrunk dramatically last month in a worrying sign for the the US economy.\u00a0<\/p>\n

Private payrolls shed 33,000 jobs in June, but analysts had expected them to add 100,000, the latest ADP figures revealed.\u00a0\u00a0<\/p>\n

The worrying data – the first decrease since 2023 – suggests the US economy could be a lot less resilient than investors have been hoping.\u00a0<\/p>\n

The S&P 500 and Nasdaq indexes turned negative in pre-market trading following the release of the report on Wednesday morning.\u00a0<\/p>\n

‘Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,’ Nela Richardson, ADP’s chief economist said in a statement.\u00a0\u00a0<\/p>\n

It comes after a recent stable jobs report <\/a>and better-than-expected inflation\u00a0figures<\/a> sent encouraging signs that the US economy was bearing up amid President Trump’s whipsawing tariff policies.\u00a0<\/p>\n

The government’s major nonfarm payrolls report for June will be published on Thursday.\u00a0<\/p>\n

Economists have predicted a 110,000 increase in jobs for June and a slight ticking up of unemployment from 4.2 percent to 4.3 percent.\u00a0<\/p>\n

\"Private <\/p>\n

Private payrolls shed 33,000 jobs in June despite analysts expectations of positive hiring\u00a0<\/p>\n

However, some analysts may decide to scale back their expectations following the release of ADP’s figures.\u00a0<\/p>\n

The latest report will likely confirm the Federal Reserve’s position on holding interest rates<\/a> steady.\u00a0<\/p>\n

Fed chair Jerome Powell has advocated a wait-and-see approach<\/a>, concerned that the full effect of Trump’s economic policies have yet to be felt by the wider economy.\u00a0\u00a0<\/p>\n

Companies have looked to tighten their payrolls in the face of high tariff bills and economic uncertainty caused by chaotic policy.\u00a0 \u00a0<\/p>\n

It comes after the economy contracted in the first quarter of the year<\/a>\u00a0and economists are increasingly concerned about the risk of a recession.\u00a0<\/p>\n

Microsoft announced on Wednesday that it would be slashing 9,000 jobs<\/a>\u00a0– around 4 percent of its global workforce.\u00a0<\/p>\n

‘We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,’ Microsoft said in a statement.\u00a0<\/p>\n

The news comes days after\u00a0Amazon’s CEO\u00a0announced brutal workforce cuts<\/a>\u00a0as continues to implement AI in its operations.\u00a0\u00a0\u00a0<\/p>\n

\"Private <\/p>\n

Private sector hiring shrunk dramatically last month in a worrying sign for the the US economy<\/p>\n

Amazon boss Andy Jassy said he plans to reduce the company’s corporate workforce over the next few years as the tech will make certain roles redundant.\u00a0<\/p>\n

Jassy told employees in a note\u00a0seen by the Wall Street Journal that AI was a once-in-a-lifetime technological advancement and it has already transformed how Amazon operates.<\/p>\n

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