US adds just 73,000 jobs in July amid pressure from Trump’s trade war
The US economy added 73,000 jobs in July, far lower than expected, amid ongoing concerns with Donald Trump’s escalating trade war,Forecasters surveyed by Bloomberg had predicted the July jobs report would show a drop in added jobs to about 109,000,The unemployment rate rose to 4,2% from 4,1% in June.
The Bureau of Labor also slashed the number of jobs added in recent months.May’s jobs figure was revised down by 125,000, from 144,000 to 19,000, and June was revised down by 133,000, from 147,000 to 14,000 – a combined 258,000 fewer jobs than previously reported.Hours after the data was released, Trump announced that he was firing the federal government official in charge of labor statistics, claiming, without evidence, that Erika McEntarfer, commissioner of labor statistics, had “faked” employment figures ahead of last year’s election.Healthcare and social assistance added 73,300 jobs over the month but growth was dragged down by more cuts to federal workers.Twelve thousand federal jobs were lost in July and federal employment is down by 84,000 since reaching a peak in January.
“There was little to celebrate in the July Employment Report,” Thomas Ryan, North America economist for Capital Economics, wrote in a note to investors,He noted that the three-month average employment gain had now fallen to “a troublingly low 35,000 – a figure that is difficult to interpret as anything other than a sign of hiring stalling, even as population growth slows,”Shortly before the latest official jobs data was published, two Federal Reserve policymakers who broke ranks with its other officials on interest rates earlier this week released statements explaining their respective decisions,The labor market “has become less dynamic and shows increasing signs of fragility”, said Michelle W Bowman, Fed vice-chair for supervision and a Trump appointee,Putting off a rate cut “could result in a deterioration in the labor market and a further slowing in economic growth”, she added.
Christopher Waller, another Trump appointee, said waiting before cutting rates was “overly cautious”, adding: “I see no reason that we should hold the policy rate at its current level and risk a sudden decline in the labor market.”Trump, who has lambasted the Fed for months after it repeatedly opted to hold rates steady, welcomed the pair’s official interventions – and called on the central bank’s board to “assume control” of policy if Jerome Powell, the central bank’s chair, refuses to cut rates.The jobs report comes in a week packed with economic news.On Wednesday, the Bureau of Economic Analysis reported that gross domestic product, a broad measure of the US’s economic health, grew at 3% in the last three months, up from a 0.5% decline in the first quarter.
The first quarter fall and second quarter bounceback were driven by Trump’s tariff policies as businesses stocked up on imports ahead of the levies at the start of the year – which cut growth – and cut back on imports in the second – which boosted growth,Taken together, the US economy grew at a sluggish 1,2% in the first six months of the year, down from the 2,5% average pace in 2024,Also on Wednesday, the Federal Reserve announced it would not cut interest rates.
The Fed is under intense pressure from Trump to cut rates but its chair said the central bank was still waiting to see what impact Trump’s tariffs will have on prices.“Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” Powell said.
Trump to blame for high cost of living, Americans say in new poll
Americans are struggling financially, grappling with debt and the rising cost of living, and are blaming the Trump administration and corporate interests for worsening economic outlooks for working families, according to a new poll.Six out of 10 Americans place blame on the Trump administration for driving up their cost of living, according to a poll conducted by Morning Consult for the Century Foundation, which asked 2,007 Americans how they are managing the high cost of living in the US economy, who they think is to blame and what are the solutions.Sixty three per cent said Trump had had a negative impact on grocery prices, and 61% said he had had a negative impact on the cost of living. Nearly half, 49%, said the Trump administration had had a negative impact on their finances. Nearly eight out of 10 Americans, including 70% of Republicans, fear that Trump’s tariffs will increase the price of everyday goods
Car finance scandal: UK supreme court poised to rule on hidden commissions
The UK’s highest court is poised to give its verdict on the £44bn car finance scandal, which could pave the way for millions of motorists to claim billions of pounds in compensation for mis-selling.The supreme court judgment, which will be handed down after financial markets close at 4.35pm on Friday, will decide whether or not to uphold a finding by the court of appeal in October that hidden commissions paid to car dealers by lenders were unlawful.That ruling, based on test cases, said making such payments to brokers who arrange car loans without disclosing the sum and terms to borrowers was unlawful. The lenders involved in the case – FirstRand Bank and Close Brothers – appealed against that decision to the supreme court
UK house prices rebound as market recovers from June dip
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Trump threatens drug giants with crackdown over prices
Donald Trump has threatened to use “every tool in our arsenal” to crack down on pharmaceutical giants if they fail to cut drug prices for Americans within 60 days.The president wrote to executives at 17 companies on Thursday, demanding they match their US prices for prescription drugs with the lowest price offered in other developed nations.Current prices were an “unacceptable burden” on US families, Trump said, claiming they could be up to three times higher than in other countries.After returning to the White House earlier this year and pledging to bring down drug prices, the president claimed that “most proposals” from the pharmaceutical industry amounted to “more of the same”, accusing firms of seeking to shift blame and requesting policies that would pave the way for handouts worths billions of dollars for the sector.“Make no mistake: a collaborative effort towards achieving global pricing parity would be the most effective path for companies, the government, and American patients,” Trump wrote
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Air traffic control failure an isolated incident, says UK minister after meeting
A radar-related technical failure that led to hundreds of flights being disrupted on Wednesday was an “isolated event” with “no evidence of malign activity”, the transport secretary has said, after summoning the head of the UK air traffic control service, Nats, to account for the disruption.Heidi Alexander said she met Martin Rolfe, the under-fire chief executive of Nats, to understand what happened and what could be done to prevent a reoccurrence in the future after more than 150 flights were cancelled and others delayed by the latest glitch.It is understood that Alexander did not press Rolfe to consider his position, despite fresh calls from Ryanair for him to quit.Most of the disruption from the brief stoppage came at Heathrow. A total of 84 departures and 71 arrivals were cancelled by 10pm on Wednesday, and some inbound flights were diverted to European cities
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