Economic Jitters Amidst Tariffs and Hiring Slowdown
US employers added a solid 139,000 jobs last month despite uncertainties from Trump's trade policies, but hiring has slowed significantly. The unemployment rate remains at 4.2%. Economists predict potential recession impacts, but the effects haven't fully manifested in government data. Job market resilience is observed albeit slowing down.
- Country:
- United States
US employers have slowed their pace of hiring, adding 139,000 jobs last month in an atmosphere clouded by President Trump's unpredictable trade policies. This hiring reduction, down from April's revised figure of 147,000, keeps the unemployment rate stable at 4.2%, according to Friday's Department of Labor report.
Fears of a potential recession loom as Trump's sweeping import tariffs are anticipated to increase costs for US companies, leading to potential layoffs. Despite these concerns, government economic data hasn't shown significant damage yet. Notably, the Federal Reserve's prior rate hikes failed to push the economy into a recession, maintaining steady growth and employment.
Nonetheless, indicators suggest careful attention is warranted. Job openings have increased, yet layoffs are ticking up, and fewer Americans are quitting their jobs, reflecting caution. With the economy and market showing resilience, close monitoring is essential as uncertainties persist around tariffs and potential long-term impacts.
(With inputs from agencies.)
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