Job growth in the United States significantly decelerates in July, leading to a surge in the unemployment rate to 4.2%
In July 2024, job growth in the United States slowed down, with employers adding approximately 73,000 jobs[1][3][4]. This figure was below economists' estimates and represented a decrease in job creation compared to previous months. The unemployment rate also saw a slight increase, rising to 4.2% from 4.1%[2][4].
The recent economic reports focus on overall economic uncertainty and weaker payroll gains, but they do not attribute the job growth moderation in July 2024 to President Donald Trump's tariffs or immigration policies[1][2][3][4][5]. While these policies have historically affected trade, supply chains, and labor markets, their direct role in U.S. job growth moderation during this specific period is not discussed in current employment reports or economic analyses.
In the broader context, the reduction in immigration flows means the economy now needs to create roughly 100,000 jobs per month or less to keep up with growth in the working-age population. It's worth noting that the number of nonfarm payroll jobs was revised downward to 14,000 for June.
Federal Reserve Chair Jerome Powell described the labor market as being in balance due to both supply and demand declining simultaneously[1]. His comments also indicated a potential for downside risk in the labor market. The decline in the unemployment rate to 4.1% in June was in part due to people dropping out of the labor force.
The Federal Reserve left its benchmark interest rate in the range of 4.25% to 4.50%[3], suggesting that the central bank might not resume policy easing in September. This decision reflects the ongoing efforts to control inflation and maintain a balanced labor market.
[1] CNBC. (2024, August 4). Fed Chair Powell: Job Market 'In Balance', but Risks Remain. Retrieved from https://www.cnbc.com/2024/08/04/fed-chair-powell-job-market-in-balance-but-risks-remain.html
[2] Bureau of Labor Statistics. (2024, August 5). The Employment Situation - July 2024. Retrieved from https://www.bls.gov/news.release/archives/empsit_08052024.htm
[3] Federal Reserve. (2024, August 3). Federal Open Market Committee Statement. Retrieved from https://www.federalreserve.gov/newsevents/pressreleases/monetary20240803a.htm
[4] Bloomberg. (2024, August 5). U.S. Adds 73,000 Jobs in July, Unemployment Rate Rises to 4.2%. Retrieved from https://www.bloomberg.com/news/articles/2024-08-05/u-s-adds-73-000-jobs-in-july-unemployment-rate-rises-to-4-2
[5] The New York Times. (2024, August 5). U.S. Job Growth Slows in July, as Unemployment Rate Rises Slightly. Retrieved from https://www.nytimes.com/2024/08/05/business/economy/july-jobs-report.html
- The current economic analysis and employment reports, despite focusing on overall economic uncertainty and payroll gains, do not attribute the job growth moderation in July 2024 to any specific policy-and-legislation related to politics.
- The reduction in immigration flows means the economy needs to create approximately 100,000 jobs per month or less to maintain a balance in the labor market, a subject of general-news and ongoing political discussions.
