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Welcome to The Logoff: The Bureau of Labor Statistics launched its month-to-month jobs report this morning, and the numbers aren’t wanting good for the US financial system, or President Donald Trump’s tariffs scheme.
What occurred within the US financial system final month? The US added simply 22,000 jobs in August, in accordance with the BLS, whereas unemployment reached 4.3 p.c — its highest fee in years, although solely a small enhance from the month earlier than.
Not solely is 22,000 jobs far fewer than the 75,000 that had been predicted, however new revisions to knowledge from earlier months are making the financial image look even worse: Somewhat than including jobs in June, the BLS stated Friday, the US misplaced 13,000 jobs.
Why does the roles report matter? The roles report is a intently watched indicator of the broader well being of the US financial system, and Friday’s flagging numbers are the most recent signal that each one isn’t effectively, particularly as Trump’s tariffs, which took impact in early August, begin to have a better impression.
Friday’s report is especially noteworthy given how Trump reacted to final month’s report, which additionally made substantial downward revisions to jobs numbers for Might and June. Trump attacked the report’s accuracy and fired the director of the BLS, Erika McEntarfer. To switch her, he nominated E.J. Antoni, a deeply underqualified right-wing economist (who could have issue getting confirmed by the Senate).
What does this imply going ahead? That is the second consecutive jobs report that has delivered dangerous information; a clearer image of an financial system in bother, with no clear respite on the horizon, is beginning to emerge. New inflation knowledge subsequent week could possibly be but extra dangerous information if tariffs drive costs increased, as anticipated.
The one shiny spot for Trump is that he’s now extra prone to get the speed minimize he’s been wanting — and agitating — for when the Federal Reserve meets later this month, because the central financial institution responds to a slumping financial system.
And with that, it’s time to sign off…
I’m wanting ahead to the brand new season of The Nice British Bake Off, which returns at present within the US. This New Yorker story, from former contestant Ruby Tandoh, is a pleasant take a look at what it’s prefer to be on the present, from the appliance course of to the tent itself. You may learn it right here, however honest warning: You would possibly go away the piece craving a candy deal with. Have an excellent weekend and we’ll see you again right here on Monday!
