US Adds 73,000 Jobs In July As Unemployment Rises To 4.2% Federal Govt Job Losses Continue

(MENAFN- Live Mint) US job growth slowed in July, with nonfarm payrolls rising by 73,000 and the unemployment rate increasing to 4.2%.

Employment within the federal government continued to decline in July and has decreased by 84,000 since reaching its peak in January.

In July, the number of new entrants, the unemployed individuals seeking their first job, rose by 275,000 to 985,000. The total number of unemployed people stood at 7.2 million.

The number of long-term unemployed people, those without a job for 27 weeks or more, increased by 179,000 to 1.8 million. They account for 24.9 per cent of all unemployed people.

Job growth has slowed amid uncertainty over US President Donald Trump's tariff levels. On Thursday, Trump imposed steep tariffs on dozens of trading partners ahead of a trade deal deadline on Friday, including a 25% duty on India.

Additionally, the White House's immigration crackdown, along with an increase in retirements, has decreased the labour supply, reported Reuters.

With fewer immigrations, the economy now needs to generate about 100,000 jobs or fewer each month to match the growth of the working-age population, the report said citing estimates by economists.

The unemployment rate fell to 4.1% in June, partly because some individuals exited the labour force. Although July saw a rise, the unemployment rate remained within the narrow 4.0%-4.2% range that has persisted since May 2024.

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