Welcome to The Logoff: The Bureau of Labor Statistics released its monthly jobs report this morning, and the numbers aren’t looking good for the US economy, or President Donald Trump’s tariffs scheme.
What happened in the US economy last month? The US added just 22,000 jobs in August, according to the BLS, while unemployment reached 4.3 percent — its highest rate in years, though only a small increase from the month before.
Not only is 22,000 jobs far fewer than the 75,000 that had been predicted, but new revisions to data from previous months are making the economic picture look even worse: Rather than adding jobs in June, the BLS said Friday, the US lost 13,000 jobs.
Why does the jobs report matter? The jobs report is a closely watched indicator of the broader health of the US economy, and Friday’s flagging numbers are the latest sign that all is not well, especially as Trump’s tariffs, which took effect in early August, start to have a greater impact.
Friday’s report is particularly noteworthy given how Trump reacted to last month’s report, which also made substantial downward revisions to jobs numbers for May and June. Trump attacked the report’s accuracy and fired the director of the BLS, Erika McEntarfer. To replace her, he nominated E.J. Antoni, a deeply underqualified right-wing economist (who may have difficulty getting confirmed by the Senate).
What does this mean going forward? This is the second consecutive jobs report that has delivered bad news; a clearer picture of an economy in trouble, with no clear respite on the horizon, is starting to emerge. New inflation data next week could be yet more bad news if tariffs drive prices higher, as expected.
The one bright spot for Trump is that he’s now more likely to get the rate cut he’s been looking — and agitating — for when the Federal Reserve meets later this month, as the central bank responds to a slumping economy.
