Fri Aug 01 19:20:00 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:
**Summary:**
The July jobs report revealed weaker-than-expected nonfarm payroll growth (73,000) and a slightly higher unemployment rate (4.2%). Significant downward revisions to previous months’ data added to the concern. The report suggests a slowing labor market, potentially influenced by trade tensions and tariffs, which could prompt the Federal Reserve to consider interest rate cuts. While healthcare led job gains, other sectors saw losses. The report also showed a concerning rise in long-term unemployment. The White House attributed some of the weakness to uncertainty related to trade and immigration policies, while President Trump continued to criticize the Federal Reserve and its Chair, Jerome Powell, calling for aggressive rate cuts. Despite the weak jobs data, overall GDP growth remains positive, though underlying demand and consumer spending are showing signs of weakness.
**News Article:**
**U.S. Job Growth Stalls in July, Raising Recession Fears Amid Trade War Worries**
**Washington D.C. –** A disappointing jobs report for July has ignited concerns about the health of the U.S. labor market, casting a shadow over the economy as President Donald Trump’s trade policies intensify. Nonfarm payrolls rose by a meager 73,000, significantly below expectations, while the unemployment rate ticked up to 4.2%, the Bureau of Labor Statistics announced Friday.
Worse, prior months’ figures were sharply revised downward, slashing a combined 258,000 jobs from May and June’s initially reported totals. The news sent tremors through financial markets, with stock futures and Treasury yields plummeting.
“This is a gamechanger jobs report,” said Heather Long, chief economist at Navy Federal Credit Union. “The labor market is deteriorating quickly.”
The weak report fueled speculation that the Federal Reserve may be forced to cut interest rates when it meets in September. Futures traders are now pricing in a 75.5% chance of a rate cut, a significant jump from 40% just a day earlier.
Job gains were concentrated in healthcare and social assistance, accounting for nearly all of the month’s growth. Retail and financial sectors saw modest increases, while federal government employment continued its decline, and professional and business services experienced losses.
The household survey painted an even bleaker picture, showing a decline of 260,000 workers and a drop in the labor force participation rate. Long-term unemployment is also on the rise, with the average length of unemployment jumping to its highest level since April 2022.
Economists suggest that businesses are hesitant to hire amid trade uncertainty and escalating tariffs. Atlanta Fed President Raphael Bostic acknowledged the slowdown and its potential for further problems.
The White House pointed to the impact of trade negotiations and immigration policies on the job market. However, President Trump unleashed another barrage of criticism against Fed Chair Jerome Powell, demanding immediate and aggressive interest rate cuts, and even suggesting the Fed board should overrule Powell.
While overall GDP growth remains positive, driven by the unwinding of import buildup, underlying demand and consumer spending are showing signs of weakness. The latest jobs report adds weight to signs of a slow but persistent cooling trend, raising questions about the long-term health of the U.S. economy.
First Piper 