"Bradley Saunders, economist at Capital Economics, said: "Outside of the pandemic, the last time jobs growth was this low over a 12-month period was during the recession caused by the global financial crisis." The figures mark a steep deterioration for the world's largest economy. Growth of 690,000 jobs would put the market on par with 2010, when the US was still reeling from the fallout of the credit crunch."
"James Knightley, chief international economist at ING, said: " Trump's policies have contributed to a further deterioration in the labour market that was already underway. The numbers have been much weaker since he's come into office. His policies have created a big headwind to growth and a big headwind to consumer and business sentiment. When you've got uncertainty, companies just naturally pull back on their hiring.""
US labour market faces a sharp slowdown, with Capital Economics forecasting just 690,000 new jobs over the next 12 months, 64% fewer than the 1.9 million added in 2024. Such reduced growth matches low post-crisis levels outside the pandemic and would mirror conditions seen in 2010. Economists point to tariffs, immigration crackdowns, and sweeping government cuts as factors creating employer uncertainty, weakening consumer and business sentiment, and slowing hiring. Official data show monthly jobs growth averaged 161,000 in 2024 but fell to 35,000 monthly from May to July, indicating rapid deterioration in labour-market momentum.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]