Trump “works”: unemployment in the USA increases to 4.2 percent

The US labor market showed significant signs of weakness at the beginning of summer. In July, few new jobs were created, while the unemployment rate rose, as can be seen from the data of the Ministry of Labor in Washington.

“The weak labor market data suggests that the US economy cools down sensitively,” said VP Bank’s chief economist, Thomas Gitzel. They showed that the US government’s customs policy burdened economic development more than previously assumed.

The number of employees outside of agriculture rose by 73,000. On average, experts had expected a significantly stronger increase of 104,000.

The government of US President Donald Trump had deleted numerous positions in civil service, which, according to experts, should also affect the situation on the labor market. Roads in the state budget have also led to layoffs at universities and in non -profit organizations.

According to the Ministry of Labor, the unemployment rate rose by 0.1 percentage points in July to 4.2 percent. The average hourly wages rose by 0.3 percent in the month comparison. In the year comparison, wages increased by 3.9 percent and thus a little stronger than expected.

The situation on the US labor market is crucial for the monetary policy of the US Federal Reserve and is closely observed by the financial markets. Most recently, the Fed had not changed interest rates and referred to a robust job market. US President Trump had repeatedly called for interest reduction to boost the economy.