The growth of employment in the United States showed a weakening marked in August, with an increase of just 22 thousand new jobs, well below expectations and with an unemployment rate that increased to 4.3 %, as reported on Friday the Office of Labor Statistics (BLS) of the Labor Department.
This scenario coincides with the intensification of the tariff policy of President Donald Trump, whose import rates have generated palpable negative effects in the US labor and economy.
The August data contrasts with the revised increase of 79 thousand positions recorded in July, but is far from the average forecast of 75 thousand new jobs for August that economists consulted by the agency Reuters.
These figures indicate a clear stagnation in the creation of employment, which in the opinion of experts is closely linked to the protectionist measures promoted from Washington.
Record tariffs hit the economy and employment
Trump’s tariff policy took the United States average tariff rate at its highest level since 1934, renewing inflationary fears and hindering commercial flow with important partners, especially Canada and Mexico.
The deterioration in foreign trade directly affects vital sectors and the impact is felt in the deceleration of the labor market.
“Since the beginning of the year, the regions of southern Ontario and parts of Canada have faced economic uncertainty due to the threat or imposition of tariffs, especially in sectors such as the automaker,” said the official statistical agency Canada, which also reported an unemployment rate in Canada of 7.1% in August, a level not seen since 2021.
These job losses are also reflected in the 66 thousand positions destroyed this month in the neighboring country by the commercial war.
In the United States, the manufacturing sector, one of the most exposed to taxed imports, reported losses of 12 thousand jobs in August, while federal employment fell in 15 thousand positions, reflecting deep cuts in the Trump administration.
Generalized weakening and low labor rotation
Experts emphasize that the slowdown in the growth of employment is a consequence of both tariff policy and a strong immigration repression that has reduced the supply of available labor.
“We are in a low rotation labor market where there are not many hiring or layoffs,” said Ernie Tedeschi, director of Economics of the Budget Laboratory of the University of Yale.
“The growth of employment is mainly due to the net birth of new companies, but this figure is the most subject to reviews due to the methodology used by the BLS,” said the bank executive.
This low rotation implies that the economy is generating few new positions, which increases the difficulties in reducing the unemployment rate.
By demographic groups, unemployment among women is 3.8 %, between Hispanics in 5.3 %, and between African Americans remains elevated by 7.5 %, with a particularly negative impact on African -American women.
https://www.youtube.com/watch?v=Rg_drum-xvo
Fed and feat cuts
The employment report has unleashed a strong debate in Washington. President Trump himself dismissed the head of the BLS last month, Erika Mtntarfer, accusing her of manipulating the figures. This was rejected by economists who attribute reviews to the methodological complexity of the counting.
Meanwhile, Trump has intensified its pressure for the Federal Reserve to reduce interest rates in response to economic deterioration. “Jerome ‘Tardón’ Powell should have dropped the guys for a long time. As always, he alleges Trump, Trump published in his social network social.
For her part, the administration spokeswoman, Karoline Leavitt, defended that under Trump management more than half a million well -paid jobs were created for workers born in the US, although she said that the progress has been hindered by the decisions of the Fed.
Meanwhile, the main economic advisor of the White House, Kevin Hasset, justified the low employment rate pointing out that “if the offer of illegal immigrant workers is reduced to zero, as has happened, then there will be no non -native labor that competes with native American workers.”
Impact on financial markets and economic perspectives
The cooling of the labor market led to an immediate reaction in the financial markets. The actions in the United States reached short historical, driven by the speculation that the Fed will cut interest rates-possibly up to 50 basic points-at the September 16-17 meeting to stimulate the economy.
The S&P 500 index touched a record of 6 532.65 points before moderating their profits, while the yields of the treasure bonds fell markedly and the dollar weakened. On the other hand, gold reached a new historical maxim close to 3,600 dollars per ounce, benefited by low rates and economic uncertainty.
Art Hogan, B Riley Wealth Management’s strategist, declared: “This data puts on the table a rate cut of 50 basic points, and 75 points for the end of the year seems practically sure,” reflecting market expectations.
The president of the FED, Jerome Powell, warned that, although the risk in the labor market increases, inflation remains a threat. For now, the Federal Reserve keeps rates in a range of 4.25 %-4.50 %, determination that will have to balance between stimulating sustained growth of employment and containing prices.
Meanwhile, commercial uncertainty and tariff disputes keep the US labor market in a state of fragility, with key indicators offering little space for robust optimism in the short term.
