Joblessness at 4.3% as Interest Rates Take Economic Toll – RVBusiness – Breaking RV Industry News
WASHINGTON — The U.S. economy suffered an unexpected setback in July, as hiring fell sharply and the unemployment rate rose for the fourth straight month as sustained higher interest rates take a toll on businesses and consumers, according to an Associated Press report.
Friday’s report from the Labor Department showed that employers added just 114,000 jobs in July – 35% fewer than forecasters had expected – and that unemployment, now up to 4.3%, is the highest since October 2021.
“Things are deteriorating quickly,’’ said Julia Pollak, chief economist at the job marketplace ZipRecruiter. The news shook financial markets around the world.
The sturdiness of the U.S. economy — the world’s largest — has been a key driver of global economic growth and the U.S. jobs market is a big reason for it, underpinning the American expansion and giving consumers 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 that the United States is in recession — though economists say the gauge probably is not reliable in the topsy-turvy post-pandemic economy.
Click here to read the full Associated Press report.
