The US job market weekend noticeably in July, with only 73,000 new jobs added.
As per the reports, the job growth numbers for May and June were found to be too high and have now been lowered by total of 258,000 jobs.
This slowdown is now raising concerns that President Donald Trump's trade policies might be discouraging businesses from hiring more workers.
The original estimate for job growth in May was net gain of 144,000 jobs but this was later drastically reduced by 125,000, bringing the new total to just 19,000 jobs.
Similarly, the initial figure for June was 147,000 jobs, but it was cut by 133,000, leaving only 14,000 jobs added.
Diane Swonk, chief economist at KPMG, in an interview with CNN said, “It’s stalling out right now."
As per the reports, after revising the numbers, June's job growth was the weakest since December 2020, when the country last saw job losses.
Overall, the rate of job creation in 2024 has been unusually low compared to most years, except during major economic crises.
Meanwhile, Joe Brusuelas, chief economist at RSM US, wrote to CNN via email, “This is absolutely the worst major economic report since the end of the pandemic era."
On the other hand, the unemployment rate rose to 4.2% from 4.1%.
