Donald Trump returned to the White House with the promise to shoot job creation. It has not been like this: the labor market weakens and, for the first time from the pandemic, begins to throw negative data. According to the indicators known today, to an anemic job creation in August, of just 22,000 non -agricultural jobs, well below expectations, reviews are added that indicate that in June there was employment destruction, 13,000 jobs less, the first fall in the occupation in more than four years. The unemployment rate in August stood at 4.3%, the highest since October 2021.
The American economy created employment in each and every four years of Joe Biden’s term, during which new employed generation records were beaten. The last loss of jobs went back to the last full month of Donald Trump’s first mandate in the White House. With the Economic Economic and Commercial Policy of the Republican and the uncertainty generated by its measures, the 53 month creation series broke in June, according to the data reviewed.
The data that has made public this Friday represents a new indication that the labor market deteriorates in the world’s first economy, and pave the way for a cut of interest rates at the meeting of this month of the Federal Reserve. Clearly, the question in the Federal Open Market Committee will not be whether the types must be reduced, but how much and how many times in the coming months.
Economists had expected a creation around 75,000 jobs in August. The reviews of the data of the previous months also confirm a weaker labor market than expected. In June, the figure goes from a growth of 14,000 jobs to a 13,000 cut. In July, 73,000 jobs are passed to 79,000. Combined, employment creation in both months is 21,000 jobs less than initially calculated.
The report is the first after the disappointing July figures, which in this way irritated the US president, Donald Trump, who (BLS). The revised figures are now revealed that originally published them.
The data are also the first since they entered into force, on August 1, the global tariffs that the Republican has imposed to the rest of the world between promises, not yet materialized, that the measure would unleash an avalanche of creation of jobs in the national manufacturing sector. The White House tenant argues that months will still spend until the official data show “real figures.” Analysts attribute weakness in the labor market, in part, to the effect of taxes and the aggressive immigration policy of the Republican Administration.
The US government and the Federal Reserve closely monitored this report, a new sign that the labor market deteriorates and the economy begins to give signs of weakness. The ADP firm, one of the giants in the elaboration of payrolls, had reported on Thursday a mere creation of 54,000 jobs in the private sector in August. The Challenger buffet, Gray and Christmas had reported that this year the companies have already announced more layoffs than in any other year since the 2020 break into full burst of the Covid pandemic. The figures of workers who change their jobs have collapsed, in an indication that opportunities are cut. For the first time since 2021 in the country there are more registered unemployed than available jobs.
All this are signs that the work bum after the pandemic seems to fade, while the economy does not yield indications of starting. Something worrying for Trump, which based his electoral campaign on promises to improve the progress of the economy.
