U.S. Labor Market Struggles Amid Tariff Tensions and Policy Shifts

The U.S. labor market faced renewed pressure in August as job growth slowed drastically, resulting in the unemployment rate reaching a near four-year peak at 4.3%. This downturn cements expectations for a Federal Reserve interest rate cut in response to the fragile labor market conditions.

Evident in the latest Labor Department figures, the U.S. economy saw its first job losses since December 2020 in June. Economists attribute this slowdown to President Donald Trump's aggressive tariffs and immigration restrictions, which have constricted the labor pool and heightened inflation worries.

Key sectors like healthcare still added jobs, but their growth is waning amid broader economic instability, marked by illegal tariff rulings and significant job loss figures in industries such as manufacturing and federal government. These challenges underscore the complex interplay between trade policies and employment dynamics in the current economic landscape.

(With inputs from agencies.)