The job market is showing signs of weakness as Trump’s tariffs take effect
The job market weakened sharply during the late spring and early summer as President Trump’s tariffs began to take effect.
U.S. employers added just 73,000 jobs in July, according to a report Friday from the Labor Department, while job gains for May and June were largely erased. The unemployment rate inched up to 4.2%.
Health care was one of the few sectors with solid job growth last month. The federal government shed 12,000 jobs in July and has lost some 84,000 workers since the beginning of the year. Tens of thousands of additional federal workers have taken buyouts but are still counted as employed through the end of September.
Tariff uncertainty hits manufacturing
Factories shed 11,000 jobs in July. Domestic manufacturers are supposed to be the beneficiaries of the president’s trade policies. But factory managers complain that uncertainty over import taxes has depressed orders and other activity. The federal government has been charging a 10% tax on nearly everything the U.S. imports since April, and higher tariffs are set to take effect on many goods next week.
“These tariff wars are beginning to wear us out,” one anonymous factory manager said in a survey released Friday by the Institute for Supply Management. “There is zero clarity about the future, and it’s been a difficult few months trying to figure out where everything is going to land and the impact on our business. So far, tremendous and unexpected costs have been incurred.”
The unemployment rate rose in July even as nearly 40,000 people dropped out of the workforce. The share of adults who are working or looking for work has fallen by half a percent in the last year.
The weakness in the job market is likely to amplify calls for the Federal Reserve to lower interest rates. The central bank held rates steady earlier this week, out of concern that rising tariffs would put more upward pressure on prices.
Despite the slowdown in hiring, wages continue to climb. Average wages in July were up 3.9% from a year ago, which is likely more than enough to outpace inflation.
Death toll from protests in Iran increases as Trump says Iran wants to talk
President Trump said Sunday that Iran proposed negotiations after his threat to strike the Islamic Republic over its crackdown targeting demonstrators. Activists say at least 544 have died.
Arson engulfs Mississippi synagogue, a congregation once bombed by Ku Klux Klan
A suspect is charged with arson in a fire that burned through a synagogue in Mississippi. Flames and smoke destroyed its library, housing Torahs.
DOJ subpoenas Federal Reserve in escalating pressure campaign
The Justice Department has subpoenaed the Fed over chair Jerome Powell's testimony over the central bank's headquarters renovation. Powell calls it part of a pressure campaign over interest rates.
The 2026 Golden Globe awards are Sunday. Here’s how to watch
The 2026 Golden Globes air on Sunday night starting at 8 p.m. ET / 5 p.m. PT.
National Portrait Gallery removes impeachment references next to Trump photo
A new portrait of President Trump is on display at the National Portrait Gallery's "America's Presidents" exhibition. Text accompanying the portrait removes references to Trump's impeachments.
America’s top figure skaters dazzled St. Louis. I left with a new love for the sport.
The U.S. Figure Skating National Championships brought the who's who of the sport to St. Louis. St. Louis Public Radio Visuals Editor Brian Munoz left a new fan of the Olympic sport.
