By Black Star News
Photos: YouTube\Wikimedia Commons
In America, new job hiring is receding as Trump’s unpredictable tariff and trade policies continue to cause numerous problems including crippling businesses and raising growing uncertainty about the world’s biggest economy.
Friday, the U.S. Labor Department reported that only 73,000 new jobs were tallied last month, not the projected 115,000. Making matters worse, unemployment rate rose to 4.2, and 221,000 persons were added to the unemployment rolls.
U.S. economist Scott Anderson warned that the job market collapse was now underway.
“A notable deterioration in U.S. labor market conditions appears to be underway,’’ said Anderson. ”We have been forecasting this since the tariff and trade war erupted this spring and more restrictive immigration restrictions were put in place. Overall, this report highlights the risk of a harder landing for the labor market.’’
For sometime now, economists have been warning that the negative consequences of Trump’s tariff fights with US trading partners would start taking effect by this summer. Friday’s job numbers appear to bear that out.
The Dow dropped 600 points after the release of Friday’s job report.
Daniel Zhao, Glassdoor’s chief economist, said the July jobs report are a harbinger of bad things to come.
“We’re finally in the eye of the hurricane,” said Zhao. “After months of warning signs, the July jobs report confirms that the slowdown isn’t just approaching—it’s here.”
Economists have long been sounding the alarm bells that Trump’s tariffs would be tallied unto the tab of the American consumer. Many companies have already raised their prices due to Trump’s tariffs these include: Nike, Adidas, Walmart, Best Buy, Ford,Temu, Mattel, Shein, Temu, Stanley, and Black & Decker.
Trump has just signed a new executive order that added tariffs on many American trading partners that fully go into effect on Aug.7. Economists continue to warn that Trump’s continued actions are creating more unpredictability.
Chief T. Rowe Price economist, Blerina Uruci, talked about the immediate effect of Trump’s tariffs.
“There was a clear, significant, immediate, tariff effect on the labor market and employment growth essentially stalled, as we were dealing with so much uncertainty about the outlook for the economy and for tariffs,” said Uruci.
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