Key Takeaways
- The U.S. economy lost 13,000 jobs in June, the Bureau of Labor Statistics said Friday, downwardly revising its estimate of a gain of 14,000 jobs.
- It was the first time since 2020 that the U.S. economy lost jobs.
- Employers have curtailed hiring as tariffs push up prices and squeeze consumer budgets.
For the first time since the pandemic, the U.S. economy had a month of negative job creation.
The U.S. economy added 22,000 jobs in August, down from 79,000 in July, the Bureau of Labor Statistics said Friday. That was well short of the 75,000 jobs forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The unemployment rate ticked up to 4.3%, up slightly from the month prior.
Not only that, but the bureau downwardly revised its previous estimate for job creation in June to a loss of 13,000 jobs rather than the addition of 14,000 jobs initially reported. It was the first time since December 2020 that the U.S. economy had negative job growth.
According to surveys and other economic indicators, many employers have put hiring plans on hold as tariffs have pushed up prices and squeezed consumer budgets. Although businesses have mostly avoided mass layoffs so far, the slowdown has raised concerns among economists and policymakers that the currently low unemployment rate could rise significantly.