The U.S. economy added only 73,000 jobs in July, below expectations and well below the previous month’s gains.
By Aniket Chakraborty
Aug 2, 2025
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WORLD NEWS
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Job growth fell far short of the 100,000 forecast, with major revisions to previous months’ numbers—down by 258,000.
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The unemployment rate rose to 4.2%, signaling possible trouble signs for the labor market.
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Despite the weak numbers, wage growth continued, with average hourly earnings up by 0.3% and a yearly gain of 3.9%.
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Healthcare led job growth with 55,000 new positions, while retail and finance sectors showed modest gains.
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The federal government saw a decline of 12,000 jobs, a part of ongoing job cuts in the public sector.
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The report’s revisions and weak data raised expectations for a Federal Reserve interest rate cut in September.
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Federal Reserve President
Raphael Bostic
highlighted concerns about the slowdown but noted the lack of certainty in future trends.
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The labor force participation rate dropped to 62.2%, the lowest since November 2022, suggesting a shrinking workforce.
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Trump responded with criticism, demanding the Federal Reserve lower interest rates more aggressively, calling Chairman Jerome Powell a “disaster.”
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