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Weak US hiring in July slams global markets, unemployment climbs to 4.3%

02 August 2024 23:47 (UTC +04:00)

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, APA reports citing AP.

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 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

The unemployment rate’s jump to 4.3% in July crossed a tripwire that historically has signaled recession — though economists say the gauge probably is not reliable in the post-pandemic economy.