US hiring fell sharply in July, an unexpected setback for the economy

Paco Dennis

Paco Dennis

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WASHINGTON (AP) — The U.S. economy suffered an unexpected setback in July as hiring fell sharply and the unemployment rate rose for the fourth straight month with raised interest rates taking a toll on businesses and households.
Employers added just 114,000 jobs in July — 35% fewer than expected — and unemployment, now at 4.3%, is the highest since October 2021, the Labor Department reported Friday.
“Things are deteriorating quickly,’’ said Julia Pollak, chief economist at ZipRecruiter.
The sharp downturn in U.S. hiring shook financial markets around the world. The Dow Jones Industrial Average dropped 610 points, or 1.5%. The S&P 500 tumbled 1.8%.
The sturdy U.S. economy has been a key driver of global economic growth and the U.S. jobs market has been the fuel, giving Americans the confidence and financial wherewithal to keep spending.

US hiring fell sharply in July, an unexpected setback for the economy stoking recession fears

What is it going to take to get our economy going again? Is it no jobs or that the jobs don't pay enough? School starts soon, so there will be more job openings. There will be more job openings.
 

Intel just announced 15,000 layoffs.

IMO we will see more mass layoffs in the months to come as many businesses adjust to consumer backlash over higher prices due in part to increases in wages.

Sadly, investing in technology, artificial intelligence, etc… is less hassle and more cost effective than investing in people.

This time feels a little different from past cycles in that so many people seem to have the income/financial support to be more selective about the jobs they are willing to take.

Being a presidential election year will also spice things up.

I’m thankful to be out of the work force and able to watch from the sidelines as it all unfolds.
 

Aunt Bea said:
Intel just announced 15,000 layoffs.

IMO we will see more mass layoffs in the months to come as many businesses adjust to consumer backlash over higher prices due in part to increases in wages.

Sadly, investing in technology, artificial intelligence, etc… is less hassle and more cost effective than investing in people.

This time feels a little different from past cycles in that so many people seem to have the income/financial support to be more selective about the jobs they are willing to take.

Being a presidential election year will also spice things up.

I’m thankful to be out of the work force and able to watch from the sidelines as it all unfolds.
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I hear a lot of tech jobs in California are moving to Texas. One thing that bothers me about that is how Texas is getting a reputation for having extreme weather a lot. That has got to affect the bottom line for these workers.?
 
Maine relies heavily on tourism. We've had a struggle to hire seasonal workers over the panic about immigrants so, many jobs went unfilled and a number of restaurants and hotels either cut back or closed. There is also the uncertainty about the coming election and what effect a new administration might have on the economy. Perhaps people are waiting to start a new business until things settle back down. Also, you would have to be willing to move if you change jobs. I have a son in IT who has been out of work since last November. He probably would have gotten a new position right away but they refuse to move from the city they are in. We moved a few times for work and never had a hiccup. Different times.
 
Myquest55 said:
Maine relies heavily on tourism. We've had a struggle to hire seasonal workers over the panic about immigrants so, many jobs went unfilled and a number of restaurants and hotels either cut back or closed. There is also the uncertainty about the coming election and what effect a new administration might have on the economy. Perhaps people are waiting to start a new business until things settle back down. Also, you would have to be willing to move if you change jobs. I have a son in IT who has been out of work since last November. He probably would have gotten a new position right away but they refuse to move from the city they are in. We moved a few times for work and never had a hiccup. Different times.
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What panic about immigrants? Maine is far from the southern border.
 
Myquest55 said:
Maine relies heavily on tourism. We've had a struggle to hire seasonal workers over the panic about immigrants so, many jobs went unfilled and a number of restaurants and hotels either cut back or closed.
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Curious about migrant panic in Maine as well? It seems like the influx over the past few years would help fill jobs???
 
The weather in Texas is really no more extreme than most other areas of the country these days. The Northeast had a heat wave several weeks ago and the West is once again on fire. Dallas had temps below average for a string of days in July.

We had one extreme winter several years ago that made the news because so many people lost power. We had a storm in Dallas with over 75 mph winds in May, but aside from that it's pretty much the same ole' same ole'. We have tornadoes here but they are much more damaging in the Plains.

Aside from the summer heat, it's a pretty desirable place to live with a growing economy.
 
seadoug said:
The weather in Texas is really no more extreme than most other areas of the country these days. The Northeast had a heat wave several weeks ago and the West is once again on fire. Dallas had temps below average for a string of days in July.

We had one extreme winter several years ago that made the news because so many people lost power. We had a storm in Dallas with over 75 mph winds in May, but aside from that it's pretty much the same ole' same ole'. We have tornadoes here but they are much more damaging in the Plains.

Aside from the summer heat, it's a pretty desirable place to live with a growing economy.
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Thank you for the post. It explains a lot. I know it is financially better somehow for the big companies. I wonder if your gonna have enough room for all the new folks. :)
 
To put it in a nutshell, there are 3 groups trying to earn money. You have people trying to make a living, Businesses trying to make a profit, and Government just taking what they want. If a Business becomes unprofitable, they have to raise their prices, or let people go. Either way its the people trying to make a living that suffer from this. Of course the government can step in and force businesses to pay higher wages... like $20/Hr to flip burgers... (just rember they are now paying more in tax... both in income and sales tax on the increased product cost)
 

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