U.S. Hiring Slowed In July And Unemployment Rate Increased To 4.3%; Show Biz And Media Sector Made Cuts To Workforces

The unemployment rate rose by 0.2% to 4.3% in July, as hiring slowed to 114,000 jobs added during the month, according to the latest Department of Labor data.

The information sector took the biggest hits in job losses — including in entertainment and media — while employment increased in health care, construction, and transportation and warehousing.

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Movies and sound recording saw a loss of 3,500 jobs, to 445,400, while publishing industries shed 5,900 positions, to 919,600. Broadcasting and content providers lost 1,600 spots to 338,900.

The overall job gains were lower than expected, and contrast to the average of 215,000 added over the prior 12 months.

There is much expectation that the Federal Reserve will begin a series of rate cuts next month, after a long stretch of relatively high interest rates as a way to tame inflation. The job market has so far defied expectations that the Fed’s actions would lead to a recession, as was the case in the late 1970s and early 1980s. Instead, economists have seen a so-called “soft-landing” of the economy.

Each month’s job figures are typically revised, which is why it’s difficult to say definitely whether each month’s data reflects a longer term trend.

“Dear Fed: As some of us have been saying for a while, you’re well behind the curve. Inflation has been beaten; labor market weakening fast. Cut, cut, cut,” Paul Krugman, economist and op ed columnist for The New York Times, wrote on X/Twitter.

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Mark Zandi, chief economist for Moodys Analytics, wrote, “The clear message in today’s soft jobs report is the Federal Reserve needs to cut interest rates. They should have begun cutting rates months ago. Job growth is decidedly throttling back, unemployment is rising quickly, hours worked per week are low and falling, and temporary help jobs continue to evaporate. Wage growth and inflation are back to the Fed’s target. The question isn’t whether the Fed should cut in September, but by how much.”

More to come...

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