WASHINGTON--Job growth slowed significantly in July, according to the Bureau of Labor Statistics, with the economy adding only 73,000 positions—well below the 104,000 projected by economists. The unemployment rate rose slightly to 4.2%, in line with expectations.
"The latest jobs report was poor, showing modest job gains in July and massive downward revisions to prior months," said America's Credit Unions Chief Economist Curt Long. "The revised estimate for June now shows a gain of only 14,000 jobs during that month, a reduction of 258,000 from the initial estimate. This report reframes several debates including the overall momentum in the economy, the impact of tariffs, and the prospect for rate cuts. Market expectations for a September rate cut jumped on the release of the report, and a cut by the October FOMC meeting is fully priced in. Credit unions are second to none when it comes to helping their members through financial distress, and they are well positioned to do so should we encounter a period of rising unemployment."