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Welcome to The Logoff: The Bureau of Labor Statistics launched its month-to-month jobs report this morning, and the numbers aren’t trying good for the US financial system, or President Donald Trump’s tariffs scheme.
What occurred within the US financial system final month? The US added simply 22,000 jobs in August, based on the BLS, whereas unemployment reached 4.3 % — its highest charge in years, although solely a small enhance from the month earlier than.
Not solely is 22,000 jobs far fewer than the 75,000 that had been predicted, however new revisions to information from earlier months are making the financial image look even worse: Somewhat than including jobs in June, the BLS mentioned Friday, the US misplaced 13,000 jobs.
Why does the roles report matter? The roles report is a intently watched indicator of the broader well being of the US financial system, and Friday’s flagging numbers are the newest signal that every one just isn’t effectively, particularly as Trump’s tariffs, which took impact in early August, begin to have a higher impression.
Friday’s report is especially noteworthy given how Trump reacted to final month’s report, which additionally made substantial downward revisions to jobs numbers for Could and June. Trump attacked the report’s accuracy and fired the director of the BLS, Erika McEntarfer. To interchange her, he nominated E.J. Antoni, a deeply underqualified right-wing economist (who could have problem getting confirmed by the Senate).
What does this imply going ahead? That is the second consecutive jobs report that has delivered unhealthy information; a clearer image of an financial system in hassle, with no clear respite on the horizon, is beginning to emerge. New inflation information subsequent week might be but extra unhealthy information if tariffs drive costs greater, as anticipated.
The one vibrant spot for Trump is that he’s now extra more likely to get the speed lower he’s been trying — and agitating — for when the Federal Reserve meets later this month, because the central financial institution responds to a slumping financial system.
And with that, it’s time to log out…
I’m trying ahead to the brand new season of The Nice British Bake Off, which returns at this time within the US. This New Yorker story, from former contestant Ruby Tandoh, is a pleasant take a look at what it’s wish to be on the present, from the applying course of to the tent itself. You possibly can learn it right here, however truthful warning: You may depart the piece craving a candy deal with. Have an ideal weekend and we’ll see you again right here on Monday!
