The US Labour market sent Washington a warning shot on Thursday. American employers added only 57,000 Jobs in June. That is less than half the 115,000 Wall Street expected, and a sharp comedown from May's 129,000.

US jobs miss big: Only 57k added in June

The quality of U.S. Economic data is under the scanner, with the response rate used for key job metrics falling to a record low. According to the kobeissi letter, the data quality continues to deteriorate.


US Private Hiring Slows At Start of 2026; Payroll Growth Misses Market Estimates 

The US job growth accelerated in September, but the unemployment rate increased to a four-year high of 4.4% and the economy in August shed jobs for the second time this year as employers navigate an uncertain environment. The increase in the jobless rate to the highest level since October 2021 reported by the Labor Department in its closely watched employment report on Thursday was from 4.3% in August and reflected more people entering the labour market in search of work. Other data from the Labour Department showed layoffs remained low in mid-November, suggesting the labour market remained in a holding pattern. “The combined jobs market data this morning does not point to a rapid deterioration of labour market conditions and affirms a modest growth path in the economy and employment,” said Joseph Brusuelas, chief economist at RSM US.&nbsp;&nbsp;“Today’s economic data will feed into the recent monetary policy narrative that the rate cut is neither prudent nor necessary,” when the Federal Reserve next meets in December.&nbsp;Also Read: <a href="https://www.wionews.com/world/will-highlight-affordability-concerns-in-meeting-with-president-trump-mamdani-1763662395401">‘Will highlight affordability concerns in meeting with President Trump’: Mamdani</a>&nbsp;Nonfarm payrolls increased by 119,000 jobs after a downwardly revised 4,000 drop in August, the Labour Department’s Bureau of Labour Statistics said. Economists polled by Reuters had forecast 50,000 jobs would be added after a previously reported 22,000 gain in August.&nbsp;The report was initially due on October 3, but was delayed by the 43-day shutdown of the government. The longest shutdown in history has forced the BLS to cancel the release of October’s report, as no data was collected for the household survey to calculate the unemployment rate for that month. October nonfarm payrolls will instead be combined with November's employment report now due on December 16, the BLS said.&nbsp;Also Read: <a href="https://www.wionews.com/world/new-zealand-halts-new-puberty-blocker-prescriptions-for-young-transgender-people-1763660267103">New Zealand halts new puberty blocker prescriptions for young transgender people</a>

The healthcare sector continued to lead employment growth, adding 43,000 jobs in September, which were in ambulatory services and at hospitals. Employment at restaurants and bars increased 37,000, while social assistance payrolls advanced by 14,000. The transportation and warehousing industry lost 25,000 jobs.Federal government payrolls decreased by another 3,000 jobs, bringing the total losses since January to 97,000. That number is expected to surge as tens of thousands of workers who took buyouts fell off government payrolls at the end of September.&nbsp;<h2>Immigration crackdown has reduced labour supply</h2>&nbsp;The labour market has lost significant momentum this year, as evidenced by sharp downward revisions to nonfarm payroll counts. Economists and policymakers blame the slowdown on reduced supply and demand for workers.Heading into the economic data blackout, the BLS had estimated that about 911,000 fewer jobs were created in the 12 months through March than previously reported. A reduction in immigration that started during the final year of former President Joe Biden’s term and accelerated under President Donald Trump’s administration has depleted labour supply.&nbsp;Also Read: <a href="https://www.wionews.com/world/iran-says-no-iaea-access-to-bombed-nuclear-sites-without-a-deal-in-place-1763657692116">Iran says no IAEA access to bombed nuclear sites without a ‘concrete deal’ in place</a>&nbsp;Economists estimate the economy now only needs to create between 30,000 and 50,000 jobs per month to keep up with growth in the working-age population, down from about 150,000 in 2024. About 470,000 people entered the labour force in September, but household employment only increased by 251,000 that month.&nbsp;Some economists believed the September employment report could still influence the Federal Reserve’s December 9-10 policy meeting. US central bank officials will not have November’s report in hand at that meeting, as the release date has been pushed to December 16 from December 5. Minutes of the Fed’s October 28-29 meeting published on Wednesday showed many policymakers cautioned that lowering borrowing costs further could risk undermining the fight to quell inflation.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/india-and-israel-ink-terms-of-reference-for-free-trade-agreement-negotiations-1763654003746">India and Israel ink terms of reference for free trade agreement negotiations</a>&nbsp;The rising popularity of artificial intelligence is also eroding demand for labour, with most of the hit landing on entry-level positions and locking recent college graduates out of work. Economists said AI was fuelling jobless economic growth.Others blamed the Trump administration’s trade policy for creating an uncertain economic environment that had hamstrung the ability of businesses, especially small enterprises, to hire.&nbsp;The US Supreme Court early this month heard arguments on the legality of Trump’s import duties, with justices raising doubts about his authority to impose tariffs under the 1977 International Emergency Economic Powers Act.

Heading into the economic data blackout, the BLS had estimated that about 911,000 fewer jobs were created in the 12 months through March than previously reported. A reduction in immigration that accelerated under President Donald Trump’s administration has depleted labour supply.

The US job growth accelerated in September, but the unemployment rate increased to a four-year high of 4.4% and the economy in August shed jobs for the second time this year as employers navigate an uncertain environment. The increase in the jobless rate to the highest level since October 2021 reported by the Labor Department in its closely watched employment report on Thursday was from 4.3% in August and reflected more people entering the labour market in search of work. Other data from the Labour Department showed layoffs remained low in mid-November, suggesting the labour market remained in a holding pattern. “The combined jobs market data this morning does not point to a rapid deterioration of labour market conditions and affirms a modest growth path in the economy and employment,” said Joseph Brusuelas, chief economist at RSM US. “Today’s economic data will feed into the recent monetary policy narrative that the rate cut is neither prudent nor necessary,” when the Federal Reserve next meets in December. Also Read: ‘Will highlight affordability concerns in meeting with President Trump’: Mamdani Nonfarm payrolls increased by 119,000 jobs after a downwardly revised 4,000 drop in August, the Labour Department’s Bureau of Labour Statistics said. Economists polled by Reuters had forecast 50,000 jobs would be added after a previously reported 22,000 gain in August. The report was initially due on October 3, but was delayed by the 43-day shutdown of the government. The longest shutdown in history has forced the BLS to cancel the release of October’s report, as no data was collected for the household survey to calculate the unemployment rate for that month. October nonfarm payrolls will instead be combined with November's employment report now due on December 16, the BLS said. Also Read: New Zealand halts new puberty blocker prescriptions for young transgender people

Heading into the economic data blackout, the BLS had estimated that about 911,000 fewer jobs were created in the 12 months through March than previously reported. A reduction in immigration that accelerated under President Donald Trump’s administration has depleted labour supply.

US posts solid job gains in September but unemployment rate rises to 4.4%

The US labor market showed further signs of strain in August, as job creation slowed and unemployment edged higher, adding weight to expectations that the Federal Reserve could soon lower interest rates. Economists had projected that the economy would add only around 75,000 jobs last month, while the jobless rate was seen ticking up to 4.3%. Although wages continued to grow at a steady pace—estimated at 0.3% month-on-month and 3.7% year-on-year—the gains were not enough to offset broader weakness.&nbsp;Adding to concerns, prior months’ hiring was revised sharply lower. May and June payrolls were reduced by a combined 258,000, erasing some of the resilience earlier reflected in official data. Meanwhile, the private payrolls report from ADP showed just 54,000 new positions in August, and weekly jobless claims rose to 237,000, the highest level since June.&nbsp;Also Read: <a href="https://www.wionews.com/business-economy/rupee-fall-is-a-boon-for-indian-expats-who-send-money-home-here-is-why-it-matters-for-largest-remittance-receiving-nation-indian-rupee-exchange-rate-1757063609339">Rupee fall is a boon for Indian expats who send money home. Here is why it matters for largest remittance-receiving nation</a>&nbsp;Perhaps most striking, the Labor Department noted that the number of job seekers now exceeds available positions for the first time since the onset of the pandemic. This imbalance signals a cooling market where opportunities are becoming harder to secure even as more people enter the workforce.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/-innovated-portable-washrooms-maryam-nawaz-called-out-by-netizens-for-posting-old-photo-amid-pak-floods-1757076905858">'Innovated portable washrooms': Maryam Nawaz called out by netizens for posting old photo amid Pak floods</a>&nbsp;Financial markets have quickly adjusted their expectations. Traders now see a rate cut at the Fed’s September 16–18 meeting as virtually certain, with probability estimates above 95%. The central bank has been balancing the need to control inflation with maintaining employment, but weakening job data may push policymakers to act sooner. For now, the August report underscores a shift: after years of resilient employment growth, the U.S. job market appears to be moving into a slower, more fragile phase.<h2>What White House says?</h2>The White House signaled on Friday (September 5) that it expects the Federal Reserve to at least weigh the possibility of a larger interest rate cut when it meets later this month, following disappointing labor market data. Kevin Hassett, Director of the National Economic Council, told reporters that while markets largely anticipate a 25-basis-point reduction, policymakers could discuss a deeper cut. “The main expectation is for 25 basis points. I’d imagine a bigger cut will be considered, though I don’t expect it to be delivered,” he said.&nbsp;Fresh government figures showed the U.S. economy added fewer jobs than expected in August, pushing the unemployment rate to 4.3%—its highest level in nearly four years. The Labor Department also revealed that jobs were lost in June, marking the first such decline in more than four years. Economists pointed to President Donald Trump’s steep import tariffs and tighter immigration policies, which have both constrained the labor pool, as key reasons for the slowdown.&nbsp;Hiring has weakened significantly, with the number of unemployed Americans outpacing job openings in July for the first time since the COVID-19 pandemic. The President’s tariffs—raising the average U.S. duty rate to its highest since 1934—have fueled inflation concerns, prompting the Fed to pause its recent cycle of rate cuts. Trump has repeatedly urged the central bank to slash interest rates further, insisting such moves are necessary to support growth and his broader economic agenda. Critics, however, warn that such pressure risks undermining the Fed’s independence.&nbsp;Still, August’s soft labor data has increased the likelihood of at least a quarter-point cut when Fed officials convene on September 16–17. Some analysts caution that seasonal factors may have exaggerated the weakness, as initial August numbers often appear lower before later revisions. Yet the broader trend shows clear cooling: average monthly job gains have slowed to just 29,000 over the past three months, compared with 82,000 during the same period in 2024.

Fewer jobs, more job seekers: US labour market under pressure in latest data

The US labor market showed further signs of strain in August, as job creation slowed and unemployment edged higher, adding weight to expectations that the Federal Reserve could soon lower interest rates. Economists had projected that the economy would add only around 75,000 jobs last month, while the jobless rate was seen ticking up to 4.3%. Although wages continued to grow at a steady pace—estimated at 0.3% month-on-month and 3.7% year-on-year—the gains were not enough to offset broader weakness. Adding to concerns, prior months’ hiring was revised sharply lower. May and June payrolls were reduced by a combined 258,000, erasing some of the resilience earlier reflected in official data. Meanwhile, the private payrolls report from ADP showed just 54,000 new positions in August, and weekly jobless claims rose to 237,000, the highest level since June. Also Read: Rupee fall is a boon for Indian expats who send money home. Here is why it matters for largest remittance-receiving nation Perhaps most striking, the Labor Department noted that the number of job seekers now exceeds available positions for the first time since the onset of the pandemic. This imbalance signals a cooling market where opportunities are becoming harder to secure even as more people enter the workforce. Also Read: 'Innovated portable washrooms': Maryam Nawaz called out by netizens for posting old photo amid Pak floods Financial markets have quickly adjusted their expectations. Traders now see a rate cut at the Fed’s September 16–18 meeting as virtually certain, with probability estimates above 95%. The central bank has been balancing the need to control inflation with maintaining employment, but weakening job data may push policymakers to act sooner. For now, the August report underscores a shift: after years of resilient employment growth, the U.S. job market appears to be moving into a slower, more fragile phase. What White House says? The White House signaled on Friday (September 5) that it expects the Federal Reserve to at least weigh the possibility of a larger interest rate cut when it meets later this month, following disappointing labor market data. Kevin Hassett, Director of the National Economic Council, told reporters that while markets largely anticipate a 25-basis-point reduction, policymakers could discuss a deeper cut. “The main expectation is for 25 basis points. I’d imagine a bigger cut will be considered, though I don’t expect it to be delivered,” he said. Fresh government figures showed the U.S. economy added fewer jobs than expected in August, pushing the unemployment rate to 4.3%—its highest level in nearly four years. The Labor Department also revealed that jobs were lost in June, marking the first such decline in more than four years. Economists pointed to President Donald Trump’s steep import tariffs and tighter immigration policies, which have both constrained the labor pool, as key reasons for the slowdown. Hiring has weakened significantly, with the number of unemployed Americans outpacing job openings in July for the first time since the COVID-19 pandemic. The President’s tariffs—raising the average U.S. duty rate to its highest since 1934—have fueled inflation concerns, prompting the Fed to pause its recent cycle of rate cuts. Trump has repeatedly urged the central bank to slash interest rates further, insisting such moves are necessary to support growth and his broader economic agenda. Critics, however, warn that such pressure risks undermining the Fed’s independence. Still, August’s soft labor data has increased the likelihood of at least a quarter-point cut when Fed officials convene on September 16–17. Some analysts caution that seasonal factors may have exaggerated the weakness, as initial August numbers often appear lower before later revisions. Yet the broader trend shows clear cooling: average monthly job gains have slowed to just 29,000 over the past three months, compared with 82,000 during the same period in 2024.

US job growth slowed in August, unemployment edged up, and markets now see a near-certain Fed rate cut at the September policy meeting

US President Donald Trump again criticised Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer on Monday and said the jobs report last week showing a slump in hirings was ‘rigged’. Trump’s claim came in his post on his social media platform, Truth Social, a couple of days after he announced the removal of McEntarfer under whose watch the official report was released. “Last week’s jobs report was rigged, just like the numbers prior to the presidential election were rigged. That’s why, in both cases, there was massive, record setting revisions in favour of the Radical Left Democrats,” Trump posted on Truth Social.&nbsp;The monthly report showed only 73,000 job additions in July, while stating that 258,000 fewer jobs were created in May and June than previously reported.&nbsp;BLS had earlier projected 125,000 job additions in May and 147,000 in June but downgraded them to 19,000 and 14,000, respectively. In the revision, the report showed a marginal uptick in July’s unemployment rate to 4.2% from 4.1% in the preceding month.&nbsp;

“Those big adjustments were made to cover up and level out the FAKE political numbers that were CONCOCTED in order to make a great Republican Success look less stellar!!! I will pick an exceptional replacement (sic),” Trump said. McEntarfer, who assumed the charge of labour bureau in January 2024, was nominated in the tenure of former president Joe Biden. Her appointment was confirmed by the US Senate, which had approved the move by a vote of 86:8. Among those who voted in her favour was JD Vance, the vice president in the Trump administration. US Trade Representative Jamieson Greer told CBS that Trump had “real concerns” about the BLS data, while Kevin Hassett, director of the National Economic Council, said the president “is right to call for new leadership”.The BLS compiles the closely watched employment report as well as consumer and producer price data.

Trump alleged that last week’s jobs report was rigged, just like the numbers prior to the presidential election were rigged.He further claimed that in both cases there was massive, record setting revisions in favour of the Radical Left Democrats.

US President Donald Trump again criticised Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer on Monday and said the jobs report last week showing a slump in hirings was ‘rigged’. Trump’s claim came in his post on his social media platform, Truth Social, a couple of days after he announced the removal of McEntarfer under whose watch the official report was released. “Last week’s jobs report was rigged, just like the numbers prior to the presidential election were rigged. That’s why, in both cases, there was massive, record setting revisions in favour of the Radical Left Democrats,” Trump posted on Truth Social. The monthly report showed only 73,000 job additions in July, while stating that 258,000 fewer jobs were created in May and June than previously reported. BLS had earlier projected 125,000 job additions in May and 147,000 in June but downgraded them to 19,000 and 14,000, respectively. In the revision, the report showed a marginal uptick in July’s unemployment rate to 4.2% from 4.1% in the preceding month.

Trump alleged that last week’s jobs report was rigged, just like the numbers prior to the presidential election were rigged.He further claimed that in both cases there was massive, record setting revisions in favour of the Radical Left Democrats.

Trump: Jobs report was ‘rigged’, just like numbers prior to presidential election

US job growth likely slowed in July as the labour market continued to cool under pressure from heightened trade tensions, restrictive monetary policy, and seasonal factors. Economists expect July 31’s employment report from the Labor Department to show nonfarm payrolls increased by around 110,000 to 115,000 jobs in July, down from 147,000 in June. The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading.Federal Reserve Chair Jerome Powell, following the Fed’s recent decision to keep interest rates unchanged in the 4.25-4.50 per cent range, acknowledged signs of a slowing labour market but gave no clear indication of imminent rate cuts. “The July jobs report is unlikely to shake the Fed out of its 'wait-and-see' posture,” Gregory Daco, chief economist at EY-Parthenon, told Reuters. Markets have pushed back expectations for a rate cut from September to October or later.<h2>Tariffs, hiring freezes, and seasonal distortions weigh on job gains</h2>July’s modest job growth follows a June report that appeared stronger on the surface but was skewed by a surge in state and local government education jobs. That one-off seasonal factor likely reversed in July, economists say, dragging down overall payroll growth. Hiring has also been chilled by ongoing uncertainty around US President Donald Trump’s escalating trade wars. The White House imposed steep new tariffs, including a 35 per cent duty on Canadian goods, just ahead of a key trade deadline. Businesses, wary of rising input costs and future policy changes, have slowed hiring plans, particularly in the private sector.<h2>Labour market still resilient, but cracks are showing</h2>Recent data supports a picture of a gradually cooling labour market rather than a sharp downturn. The Job Openings and Labor Turnover Survey (JOLTS) showed job openings declined to 7.4 million in June, and the quits rate, a gauge of worker confidence, fell to its lowest since December. Initial jobless claims rose modestly last week to 218,000 but remain well within historical norms. Companies like Disney, Intel, and Starbucks have announced job cuts in recent months, but layoffs overall remain low. The labour` market continues to add jobs at a slower pace, averaging 130,000 per month this year, down from 168,000 in 2024 and sharply lower than the 400,000 monthly average during the post-Covid boom.While the labour market is still considered strong, policymakers are closely watching upcoming data, including a major payrolls benchmark revision in September that could retroactively show weaker job growth. If that revision reveals significant weakness, some economists believe the Fed could be forced to reconsider rate cuts before year’s end.&nbsp;(With inputs from agencies)

The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading.

US job growth likely slowed in July as the labour market continued to cool under pressure from heightened trade tensions, restrictive monetary policy, and seasonal factors. Economists expect July 31’s employment report from the Labor Department to show nonfarm payrolls increased by around 110,000 to 115,000 jobs in July, down from 147,000 in June. The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading. Federal Reserve Chair Jerome Powell, following the Fed’s recent decision to keep interest rates unchanged in the 4.25-4.50 per cent range, acknowledged signs of a slowing labour market but gave no clear indication of imminent rate cuts. “The July jobs report is unlikely to shake the Fed out of its 'wait-and-see' posture,” Gregory Daco, chief economist at EY-Parthenon, told Reuters. Markets have pushed back expectations for a rate cut from September to October or later. Tariffs, hiring freezes, and seasonal distortions weigh on job gains July’s modest job growth follows a June report that appeared stronger on the surface but was skewed by a surge in state and local government education jobs. That one-off seasonal factor likely reversed in July, economists say, dragging down overall payroll growth. Hiring has also been chilled by ongoing uncertainty around US President Donald Trump’s escalating trade wars. The White House imposed steep new tariffs, including a 35 per cent duty on Canadian goods, just ahead of a key trade deadline. Businesses, wary of rising input costs and future policy changes, have slowed hiring plans, particularly in the private sector. Labour market still resilient, but cracks are showing Recent data supports a picture of a gradually cooling labour market rather than a sharp downturn. The Job Openings and Labor Turnover Survey (JOLTS) showed job openings declined to 7.4 million in June, and the quits rate, a gauge of worker confidence, fell to its lowest since December. Initial jobless claims rose modestly last week to 218,000 but remain well within historical norms. Companies like Disney, Intel, and Starbucks have announced job cuts in recent months, but layoffs overall remain low. The labour` market continues to add jobs at a slower pace, averaging 130,000 per month this year, down from 168,000 in 2024 and sharply lower than the 400,000 monthly average during the post-Covid boom. While the labour market is still considered strong, policymakers are closely watching upcoming data, including a major payrolls benchmark revision in September that could retroactively show weaker job growth. If that revision reveals significant weakness, some economists believe the Fed could be forced to reconsider rate cuts before year’s end. (With inputs from agencies)

The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading.

US job growth slows in July amid tariff uncertainty and labour market cooling

A growing number of American and international companies are slashing jobs in response to President Donald Trump’s sweeping tariffs on global imports. The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory.Trump’s latest trade policy, rolled out in late March 2025, imposes a 25 per cent tariff on all automobile and auto parts imports, along with days later in April imposing sweeping tariffs on over a dozen trading partners.The Trump administration has framed the move as a national security measure to protect domestic manufacturing. However, the real-world impact is proving far more complex—and costly.The tariffs have increased cost pressure on companies, and while some companies have decided to pass on the additional cost to the consumer, some have resorted to cutting costs by reducing their workforce.<h3>Thousands laid off across sectors</h3>In just the last few weeks, companies have reported mass job cuts and halted production at facilities across North America. Stellantis NV has temporarily laid off 900 workers in the US and halted output at plants in Mexico and Canada, citing medium- and long-term effects of the tariffs.Volvo Group and Mack Trucks, both hit hard by tariff-related cost spikes and falling demand, have announced more than 800 job cuts across Pennsylvania, Virginia, and Maryland. Meanwhile, Swedish fintech company Klarna is slashing 40 per cent of its workforce as it leans into AI to reduce costs.Consumer goods giant Procter &amp; Gamble is planning to cut 7,000 jobs, nearly 6 per cent of its workforce, over the next two years. The company cited uneven demand and increased input costs due to trade disruptions.Some news reports also revealed that the company plans to exit certain product categories and markets. P&amp;G imports several raw materials and packaging components from China, making it particularly vulnerable to tariff-related price volatility.Steelmaker Cleveland-Cliffs laid off over 1,200 workers, while UPS is cutting 20,000 jobs after seeing a sharp reduction in shipments from major clients like Amazon.Even tech giants like Microsoft, Google, and Amazon have announced tens of thousands of role reductions, citing a mix of automation, falling demand, and global cost pressures.Congressman Ro Khanna has criticised the tariff-driven chaos. “This week, 19 factories had mass layoffs, 15 closed, and over 4,100 factory workers lost their jobs,” he posted on X. He also warned that the latest round of protectionist policies could trigger broader economic pain.<h3>Economists sound alarm over recession risk</h3>Wall Street is increasingly concerned. JPMorgan’s chief US economist Michael Feroli has downgraded GDP growth projections from 1.3 per cent to -0.3 per cent for 2025, stating that the economy is now expected to contract under the “weight of the tariffs”.Federal Reserve Chair Jerome Powell has echoed the concern, noting that the tariffs may cause persistent inflation and economic drag—effects that could outweigh their intended industrial benefits.Globally, the International Monetary Fund (IMF) has projected a 2.8 per cent annual decline in global output, including a 1.8 per cent drop for the US, due to the new wave of trade barriers.Meanwhile, European brewers are warning of 100,000 potential job losses if the US follows through with levies on beer imports from the EU and Mexico.While the recent job data released in the US has indicated an uptick in hiring and has offered a glimmer of hope for the US labour market, the concerns about unemployment loom as the data also showed a rise in layoffs.Despite these warnings, Trump and his supporters continue to defend the policy as a step toward reshoring industry and protecting US jobs. But, at least so far, the reality playing out on the ground tells a different story.

The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory.

A growing number of American and international companies are slashing jobs in response to President Donald Trump’s sweeping tariffs on global imports. The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory. Trump’s latest trade policy, rolled out in late March 2025, imposes a 25 per cent tariff on all automobile and auto parts imports, along with days later in April imposing sweeping tariffs on over a dozen trading partners. The Trump administration has framed the move as a national security measure to protect domestic manufacturing. However, the real-world impact is proving far more complex—and costly. The tariffs have increased cost pressure on companies, and while some companies have decided to pass on the additional cost to the consumer, some have resorted to cutting costs by reducing their workforce. Thousands laid off across sectors In just the last few weeks, companies have reported mass job cuts and halted production at facilities across North America. Stellantis NV has temporarily laid off 900 workers in the US and halted output at plants in Mexico and Canada, citing medium- and long-term effects of the tariffs. Volvo Group and Mack Trucks, both hit hard by tariff-related cost spikes and falling demand, have announced more than 800 job cuts across Pennsylvania, Virginia, and Maryland. Meanwhile, Swedish fintech company Klarna is slashing 40 per cent of its workforce as it leans into AI to reduce costs. Consumer goods giant Procter & Gamble is planning to cut 7,000 jobs, nearly 6 per cent of its workforce, over the next two years. The company cited uneven demand and increased input costs due to trade disruptions. Some news reports also revealed that the company plans to exit certain product categories and markets. P&G imports several raw materials and packaging components from China, making it particularly vulnerable to tariff-related price volatility. Steelmaker Cleveland-Cliffs laid off over 1,200 workers, while UPS is cutting 20,000 jobs after seeing a sharp reduction in shipments from major clients like Amazon. Even tech giants like Microsoft, Google, and Amazon have announced tens of thousands of role reductions, citing a mix of automation, falling demand, and global cost pressures. Congressman Ro Khanna has criticised the tariff-driven chaos. “This week, 19 factories had mass layoffs, 15 closed, and over 4,100 factory workers lost their jobs,” he posted on X. He also warned that the latest round of protectionist policies could trigger broader economic pain. Economists sound alarm over recession risk Wall Street is increasingly concerned. JPMorgan’s chief US economist Michael Feroli has downgraded GDP growth projections from 1.3 per cent to -0.3 per cent for 2025, stating that the economy is now expected to contract under the “weight of the tariffs”. Federal Reserve Chair Jerome Powell has echoed the concern, noting that the tariffs may cause persistent inflation and economic drag—effects that could outweigh their intended industrial benefits. Globally, the International Monetary Fund (IMF) has projected a 2.8 per cent annual decline in global output, including a 1.8 per cent drop for the US, due to the new wave of trade barriers. Meanwhile, European brewers are warning of 100,000 potential job losses if the US follows through with levies on beer imports from the EU and Mexico. While the recent job data released in the US has indicated an uptick in hiring and has offered a glimmer of hope for the US labour market, the concerns about unemployment loom as the data also showed a rise in layoffs. Despite these warnings, Trump and his supporters continue to defend the policy as a step toward reshoring industry and protecting US jobs. But, at least so far, the reality playing out on the ground tells a different story.

The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory.

Trade restrictions spark layoffs at major firms as recession risk rise

The pace of job creation in the US is cooling, as shifting trade policies, rising business costs and a sharp drop in corporate profits weigh on labour market momentum, according to Bloomberg reports.&nbsp;Employers added an estimated 125,000 jobs in May, a decline from the average 162,000 payroll additions over the past three months, as per a Bloomberg median forecast. The unemployment rate is expected to hold at 4.2 per cent, reflecting a stable but softening labour environment.&nbsp;“Our preliminary forecast range for May nonfarm payrolls is 60,000–130,000, with the central tendency clustering around 90,000 – lower than the consensus of 130,000,” Bloomberg economists Anna Wong, Stuart Paul, Eliza Winger, Estelle Ou and Chris G. Collins wrote in a note.&nbsp;They added that the weakness is likely concentrated in the leisure and hospitality sector, due to reduced international tourism and government travel.<h2>Corporate profits slump as businesses face tariff squeeze</h2>According to the US Commerce Department, corporate profits fell by 118.1 billion dollars in the first quarter of 2025 – the steepest decline since the onset of the pandemic in 2020. As per Reuters, this profit contraction is being largely blamed on higher input costs, driven by President Donald Trump’s escalating trade tariffs.&nbsp;On 30 May, Trump announced plans to double steel and aluminium tariffs to 50 per cent from the existing 25 per cent, in a bid to pressure global producers and reduce the trade deficit. The move has sparked backlash from the European Commission, which called it a violation of fair trade and warned of countermeasures.&nbsp;“Employers seeking clarity around the White House’s trade policy have instead been greeted with frequent adjustments to timelines and import duty schedules,” Bloomberg noted, adding that this has left businesses hesitant to commit to fresh investments.<h2>Labour data reveals rising unemployment claims</h2>As businesses tighten costs amid profit pressures, signs of softening labour demand are becoming more visible. Initial jobless claims rose by 14,000 to 240,000 for the week ending 24 May, higher than expected, while continuing claims climbed to 1.92 million, the highest since November 2021, according to Reuters.<h2>Fed likely to hold policy amid mixed signals</h2>The Federal Reserve has kept rates steady at 4.25–4.50 per cent since December 2024, as officials await more consistent economic signals. Fed Chair Jerome Powell has emphasised that the central bank will take a “data-dependent approach,” noting risks on both inflation and employment fronts.&nbsp;“Federal Reserve officials are likely to take the labour market reports in stride as they too await clarity on how trade and tax policy will impact the economy and inflation,” Bloomberg reported.&nbsp;Investors will watch closely for comments this week from Fed Governors Lisa Cook, Adriana Kugler, and Christopher Waller, as well as the release of the Fed’s Beige Book on anecdotal economic conditions across districts.<h2>Trade-driven GDP drag</h2>The economic slowdown is further evidenced by revised GDP figures. As per the Commerce Department, US GDP contracted by 0.2 per cent in the first quarter, slightly better than the earlier -0.3 per cent estimate.&nbsp;&nbsp;The contraction reflects a 42.6 per cent spike in imports, as companies rushed purchases ahead of expected tariffs. However, inventories and consumer spending failed to keep pace, leading to a net drag on growth.&nbsp;“Concerned that revenue will suffer, companies are growing more conscious about cost-saving efforts that risk culminating in slower labour demand,” Bloomberg observed.

Compared to the average of 162,000 jobs created over the previous three months, employers added an estimated 125,000 jobs in May. 

The pace of job creation in the US is cooling, as shifting trade policies, rising business costs and a sharp drop in corporate profits weigh on labour market momentum, according to Bloomberg reports. Employers added an estimated 125,000 jobs in May, a decline from the average 162,000 payroll additions over the past three months, as per a Bloomberg median forecast. The unemployment rate is expected to hold at 4.2 per cent, reflecting a stable but softening labour environment. “Our preliminary forecast range for May nonfarm payrolls is 60,000–130,000, with the central tendency clustering around 90,000 – lower than the consensus of 130,000,” Bloomberg economists Anna Wong, Stuart Paul, Eliza Winger, Estelle Ou and Chris G. Collins wrote in a note. They added that the weakness is likely concentrated in the leisure and hospitality sector, due to reduced international tourism and government travel. Corporate profits slump as businesses face tariff squeeze According to the US Commerce Department, corporate profits fell by 118.1 billion dollars in the first quarter of 2025 – the steepest decline since the onset of the pandemic in 2020. As per Reuters, this profit contraction is being largely blamed on higher input costs, driven by President Donald Trump’s escalating trade tariffs. On 30 May, Trump announced plans to double steel and aluminium tariffs to 50 per cent from the existing 25 per cent, in a bid to pressure global producers and reduce the trade deficit. The move has sparked backlash from the European Commission, which called it a violation of fair trade and warned of countermeasures. “Employers seeking clarity around the White House’s trade policy have instead been greeted with frequent adjustments to timelines and import duty schedules,” Bloomberg noted, adding that this has left businesses hesitant to commit to fresh investments. Labour data reveals rising unemployment claims As businesses tighten costs amid profit pressures, signs of softening labour demand are becoming more visible. Initial jobless claims rose by 14,000 to 240,000 for the week ending 24 May, higher than expected, while continuing claims climbed to 1.92 million, the highest since November 2021, according to Reuters. Fed likely to hold policy amid mixed signals The Federal Reserve has kept rates steady at 4.25–4.50 per cent since December 2024, as officials await more consistent economic signals. Fed Chair Jerome Powell has emphasised that the central bank will take a “data-dependent approach,” noting risks on both inflation and employment fronts. “Federal Reserve officials are likely to take the labour market reports in stride as they too await clarity on how trade and tax policy will impact the economy and inflation,” Bloomberg reported. Investors will watch closely for comments this week from Fed Governors Lisa Cook, Adriana Kugler, and Christopher Waller, as well as the release of the Fed’s Beige Book on anecdotal economic conditions across districts. Trade-driven GDP drag The economic slowdown is further evidenced by revised GDP figures. As per the Commerce Department, US GDP contracted by 0.2 per cent in the first quarter, slightly better than the earlier -0.3 per cent estimate. The contraction reflects a 42.6 per cent spike in imports, as companies rushed purchases ahead of expected tariffs. However, inventories and consumer spending failed to keep pace, leading to a net drag on growth. “Concerned that revenue will suffer, companies are growing more conscious about cost-saving efforts that risk culminating in slower labour demand,” Bloomberg observed.

A decline in corporate profits, increased business expenses, and changing trade policy are all contributing to the cooling of the US labor market.&nbsp;

US job growth slows amid profit slump and Trump tariff uncertainty

For markets bolstered by dovish central banks, expanding economies and receding inflation, the news as November begins is how vulnerable they've become. Long-standing pillars of strength are showing cracks. Take a look at this report to understand the 'oohs and ahhs' of this week's electoral and fiscal fireworks...

US Election & Fed Dominate the Calendar

The US job openings tumbled last month to their lowest level since January 2021, a sign that the labor market is losing some momentum. Still, posted vacancies remain well above pre-pandemic levels according to a detailed report by Associated Press.

The Labour Department reported on October 29 that the number of job openings dropped to 7.4 million in September from 7.9 million in August. Economists had expected the level of openings to be virtually unchanged. Job openings fell in particular at healthcare companies and at government agencies at the federal, state and local levels.

The total number of layoffs also rose and the number of Americans who quit their jobs fell below 3.1 million, the fewest since August 2020.

No sign of a sudden collapse in the labour market <o:p></o:p>

“Workers (are) not as confident as they have been about being able to find a job if they quit without another to step into,″ Carl Weinberg and Rubeela Farooqi of High Frequency Economics wrote in a commentary. Still, they added, “there is no signal here of any sudden collapse of the labour market here or any imminent recession. The labour market is softer, sure, but it is not imploding.”

Though job openings have fallen sharply since peaking at 12.2 million in 2022, they remain higher than they were before the coronavirus pandemic paralyzed the American economy in early 2020. When the economy roared back with unexpected strength from the COVID-19 recession, companies scrambled to find enough workers to keep up with customer orders.

Earlier Fed raised rates by 11 times to combat inflation<o:p></o:p>

The overheating economy caused an outburst of inflation, and the Federal Reserve responded by raising its benchmark interest rate 11 times in 2022 and 2023. Inflation has plummeted from a peak of 9.1 per cent in June 2022 to 2.4 per cent, the Associated Press report detailed further.

The economy proved surprisingly resilient in the face of the Fed hikes, dodging a widely forecast recession. Compared with a surge in hiring from 2021 through 2023, though, job creation has slowed this year, to an average of 200,000 new jobs a month from January through September this year. That is healthy though down from a record average of 604,000 jobs a month in 2021 at the end of pandemic lockdowns, 377,000 in 2022 and 251,000 last year.

Still, employers did add an unexpectedly strong 254,000 jobs in September. On November 1, the Labor Department is expected to report that the economy added 120,000 jobs in October, a total that will likely be held down by the effects of Hurricanes Helene and Milton and a strike at Boeing.

Further, the unemployment rate is expected to remain at a low 4.1 per cent, according to a survey of forecasters by the data firm FactSet.

Market participants and investors are going to follow the upcoming jobs and inflation data as we build up towards the US elections. This will help them in taking informed investment decisions depending on how the overall US economy evolves going ahead.

The US job openings tumbled last month to their lowest level since January 2021, a sign that the labor market is losing some momentum. Still, posted vacancies remain well above pre-pandemic levels according to a detailed report by Associated Press.

The US job openings tumbled last month to their lowest level since January 2021, a sign that the labor market is losing some momentum. Still, posted vacancies remain well above pre-pandemic levels according to a detailed report by Associated Press. The Labour Department reported on October 29 that the number of job openings dropped to 7.4 million in September from 7.9 million in August. Economists had expected the level of openings to be virtually unchanged. Job openings fell in particular at healthcare companies and at government agencies at the federal, state and local levels. The total number of layoffs also rose and the number of Americans who quit their jobs fell below 3.1 million, the fewest since August 2020. No sign of a sudden collapse in the labour market “Workers (are) not as confident as they have been about being able to find a job if they quit without another to step into,″ Carl Weinberg and Rubeela Farooqi of High Frequency Economics wrote in a commentary. Still, they added, “there is no signal here of any sudden collapse of the labour market here or any imminent recession. The labour market is softer, sure, but it is not imploding.” Though job openings have fallen sharply since peaking at 12.2 million in 2022, they remain higher than they were before the coronavirus pandemic paralyzed the American economy in early 2020. When the economy roared back with unexpected strength from the COVID-19 recession, companies scrambled to find enough workers to keep up with customer orders. Earlier Fed raised rates by 11 times to combat inflation The overheating economy caused an outburst of inflation, and the Federal Reserve responded by raising its benchmark interest rate 11 times in 2022 and 2023. Inflation has plummeted from a peak of 9.1 per cent in June 2022 to 2.4 per cent, the Associated Press report detailed further. The economy proved surprisingly resilient in the face of the Fed hikes, dodging a widely forecast recession. Compared with a surge in hiring from 2021 through 2023, though, job creation has slowed this year, to an average of 200,000 new jobs a month from January through September this year. That is healthy though down from a record average of 604,000 jobs a month in 2021 at the end of pandemic lockdowns, 377,000 in 2022 and 251,000 last year. Still, employers did add an unexpectedly strong 254,000 jobs in September. On November 1, the Labor Department is expected to report that the economy added 120,000 jobs in October, a total that will likely be held down by the effects of Hurricanes Helene and Milton and a strike at Boeing. Further, the unemployment rate is expected to remain at a low 4.1 per cent, according to a survey of forecasters by the data firm FactSet. Market participants and investors are going to follow the upcoming jobs and inflation data as we build up towards the US elections. This will help them in taking informed investment decisions depending on how the overall US economy evolves going ahead.

US job openings drop in September to a 3 1/2-year low

<o:p></o:p>

The US consumer spending showed resilience in September, signaling continued economic strength, as highlighted in a report by the Commerce Department on Thursday.&nbsp;

Retail sales increased by a seasonally adjusted 0.4 per cent compared to August’s 0.1 per cent&nbsp;rise, surpassing Dow Jones' forecast of 0.3 per cent, according to a detailed report by CNBC.

The CNBC report further stated that, when excluding auto sales, spending rose 0.5 per cent, outpacing the expected 0.1 per cent&nbsp;gain. These figures account for seasonal adjustments but not inflation, which rose 0.2 per cent&nbsp;during the month according to the consumer price index.

In another positive sign for the economy, initial unemployment claims dropped by 19,000 to a seasonally adjusted 241,000, below the projected 260,000, as reported by the US Labor Department. This decline occurred despite the devastation caused by hurricanes Helene and Milton, which inflicted billions in damages across the Southeast. Both Florida and North Carolina saw reduced claims after experiencing a sharp rise in the prior week, based on unadjusted data.

Following these reports, stock market futures edged higher, and Treasury yields also saw an uptick. The data suggests that consumer spending, which accounts for about two-thirds of US economic activity, remains robust, while the labor market is holding steady despite concerns of weakness over the summer months.&nbsp;

In retail, notable spending increases were recorded in miscellaneous store retailers (up 4 per cent), clothing stores (up 1.5 per cent), and bars and restaurants (up 1 per cent). These gains offset a 1.6 per cent&nbsp;decrease at gas stations, reflecting lower fuel prices, as well as declines in electronics and appliances stores (-3.3 per cent) and furniture stores (-1.4 per cent).

Further, year-over-year, sales rose 1.7 per cent, compared to a 2.4 per cent&nbsp;increase in the consumer price index over the same period.

The report coincides with the Federal Reserve’s recent decision to cut its benchmark interest rate by half a percentage point, signaling potential further rate cuts through 2025. Fed policymakers remain optimistic about inflation approaching the 2 per cent&nbsp;target but are closely watching the labor market, which shows some signs of weakening despite strong September payrolls.

On a global scale, the European Central Bank also reduced its deposit rate by a quarter point, expressing similar optimism on inflation but cautioning against a broader economic slowdown.

Meanwhile, continuing unemployment claims rose slightly to 1.867 million, with decreases in storm-affected states like Florida and North Carolina, as well as a drop of 7,812 claims in Michigan, which was previously impacted by the Boeing strike.

Additionally, the Philadelphia Federal Reserve reported a jump in its manufacturing activity index, which climbed to 10.3 in October, indicating a notable improvement from September's 1.7 and surpassing the forecast of 3.0.

<o:p></o:p>

The US consumer spending showed resilience in September, signaling continued economic strength, as highlighted in a report by the Commerce Department on Thursday.

The US consumer spending showed resilience in September, signaling continued economic strength, as highlighted in a report by the Commerce Department on Thursday. Retail sales increased by a seasonally adjusted 0.4 per cent compared to August’s 0.1 per cent rise, surpassing Dow Jones' forecast of 0.3 per cent, according to a detailed report by CNBC. The CNBC report further stated that, when excluding auto sales, spending rose 0.5 per cent, outpacing the expected 0.1 per cent gain. These figures account for seasonal adjustments but not inflation, which rose 0.2 per cent during the month according to the consumer price index. In another positive sign for the economy, initial unemployment claims dropped by 19,000 to a seasonally adjusted 241,000, below the projected 260,000, as reported by the US Labor Department. This decline occurred despite the devastation caused by hurricanes Helene and Milton, which inflicted billions in damages across the Southeast. Both Florida and North Carolina saw reduced claims after experiencing a sharp rise in the prior week, based on unadjusted data. Following these reports, stock market futures edged higher, and Treasury yields also saw an uptick. The data suggests that consumer spending, which accounts for about two-thirds of US economic activity, remains robust, while the labor market is holding steady despite concerns of weakness over the summer months. In retail, notable spending increases were recorded in miscellaneous store retailers (up 4 per cent), clothing stores (up 1.5 per cent), and bars and restaurants (up 1 per cent). These gains offset a 1.6 per cent decrease at gas stations, reflecting lower fuel prices, as well as declines in electronics and appliances stores (-3.3 per cent) and furniture stores (-1.4 per cent). Further, year-over-year, sales rose 1.7 per cent, compared to a 2.4 per cent increase in the consumer price index over the same period. The report coincides with the Federal Reserve’s recent decision to cut its benchmark interest rate by half a percentage point, signaling potential further rate cuts through 2025. Fed policymakers remain optimistic about inflation approaching the 2 per cent target but are closely watching the labor market, which shows some signs of weakening despite strong September payrolls. On a global scale, the European Central Bank also reduced its deposit rate by a quarter point, expressing similar optimism on inflation but cautioning against a broader economic slowdown. Meanwhile, continuing unemployment claims rose slightly to 1.867 million, with decreases in storm-affected states like Florida and North Carolina, as well as a drop of 7,812 claims in Michigan, which was previously impacted by the Boeing strike. Additionally, the Philadelphia Federal Reserve reported a jump in its manufacturing activity index, which climbed to 10.3 in October, indicating a notable improvement from September's 1.7 and surpassing the forecast of 3.0.

US retail sales in September rose 0.4%, an improvement after economic concerns

Now, we look at how markets started the week. Asian stocks advanced after stronger-than-expected US Payroll data underscored the health of the world's largest economy and boosted investor optimism. Watch to know more.

Trading is Being Shaped by Signs of US Economic Resilience

The US Stock market has recovered most of the losses suffered in its summer selloff. While the S&P 500 index has bounced back before, this time is unique because the rally is not being led by big tech firms. Instead it’s everyone else’s turn – the ‘other 493’ stocks.

Asian stocks struggle to find direction ahead of Fed meeting

In global markets, all eyes are on the US Jobs report later on Friday. Investors will dissect the data to understand the federal reserve's rate path. The payroll data is crucial to determine what the fed does at its meeting on September 18th.

Global Markets: Wall Street's big bet on jumbo Fed cuts hangs on jobs report

It is important to note that, US job openings declined to a 3.5-year low in July, reflecting a labor market that is gradually losing steam. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, the number of job openings fell by 237,000 to 7.673 million by the end of July, marking the lowest level since January 2021 as detailed by Reuters in a report. <o:p></o:p>

This decline was more pronounced than expected, with economists having forecast 8.100 million job openings. The job openings rate also dropped to 4.6 per cent, the lowest since December 2020, down from 4.8 per cent in June.<o:p></o:p>

Impact of these changes on the labor market sector wise<o:p></o:p>

The reduction in job openings was particularly noticeable in certain sectors. Healthcare and social assistance saw a decline of 187,000 unfilled positions, while state and local government, excluding education, experienced a decrease of 101,000. However, the professional and business services category witnessed an increase of 178,000 job openings.<o:p></o:p>

Despite the decline, the labor market remains robust. Hires increased by 273,000 to 5.521 million, with significant gains in accommodation and food services. Layoffs rose to 1.762 million, but this figure remains low by historical standards. The layoffs rate increased to 1.1 per cent from 1.0 per cent in June.<o:p></o:p>

Trade deficit widens amid strong imports<o:p></o:p>

In parallel with the labor market trends, the U.S. trade deficit widened in July due to a surge in imports. Data from the Commerce Department's Bureau of Economic Analysis showed that imports rose 2.1 per cent to $345.4 billion, with goods imports reaching $278.2 billion, the highest since June 2022. Capital goods imports hit a record high, driven by increased demand for computer accessories.<o:p></o:p>

The trade deficit increased 6.9 per cent to $97.6 billion, with the politically sensitive goods trade deficit with China rising to $27.2 billion. Exports, however, gained only 0.5 per cent to $266.6 billion.<o:p></o:p>

The combination of these economic indicators suggests a mixed picture for the U.S. economy. While the labor market is cooling, it remains in relatively good shape. "The labor market is still in pretty good shape, but it has cooled dramatically over the last year and a half," noted Bill Adams, chief economist at Comerica Bank.<o:p></o:p>

The strong domestic demand, as reflected by the high imports, indicates the economy's resilience. However, this could also lead to front-loading of imports in anticipation of higher tariffs, particularly on goods from China. The market reaction was cautious, with financial markets seeing less than a 50 per cent chance of a half-percentage-point interest rate cut in September.<o:p></o:p>

Hence, the U.S. economy is navigating a period of transition, with the labor market easing and the trade deficit widening. These trends will be closely watched by policymakers and investors as they assess the need for monetary policy adjustments and the overall health of the economy.<o:p></o:p>

<o:p>&nbsp;</o:p>

It is important to note that, US job openings declined to a 3.5-year low in July, reflecting a labor market that is gradually losing steam. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, the number of job openings fell by 237,000 to 7.

It is important to note that, US job openings declined to a 3.5-year low in July, reflecting a labor market that is gradually losing steam. According to the Job Openings and Labor Turnover Survey (JOLTS) report from the Labor Department, the number of job openings fell by 237,000 to 7.673 million by the end of July, marking the lowest level since January 2021 as detailed by Reuters in a report. This decline was more pronounced than expected, with economists having forecast 8.100 million job openings. The job openings rate also dropped to 4.6 per cent, the lowest since December 2020, down from 4.8 per cent in June. Impact of these changes on the labor market sector wise The reduction in job openings was particularly noticeable in certain sectors. Healthcare and social assistance saw a decline of 187,000 unfilled positions, while state and local government, excluding education, experienced a decrease of 101,000. However, the professional and business services category witnessed an increase of 178,000 job openings. Despite the decline, the labor market remains robust. Hires increased by 273,000 to 5.521 million, with significant gains in accommodation and food services. Layoffs rose to 1.762 million, but this figure remains low by historical standards. The layoffs rate increased to 1.1 per cent from 1.0 per cent in June. Trade deficit widens amid strong imports In parallel with the labor market trends, the U.S. trade deficit widened in July due to a surge in imports. Data from the Commerce Department's Bureau of Economic Analysis showed that imports rose 2.1 per cent to $345.4 billion, with goods imports reaching $278.2 billion, the highest since June 2022. Capital goods imports hit a record high, driven by increased demand for computer accessories. The trade deficit increased 6.9 per cent to $97.6 billion, with the politically sensitive goods trade deficit with China rising to $27.2 billion. Exports, however, gained only 0.5 per cent to $266.6 billion. The combination of these economic indicators suggests a mixed picture for the U.S. economy. While the labor market is cooling, it remains in relatively good shape. "The labor market is still in pretty good shape, but it has cooled dramatically over the last year and a half," noted Bill Adams, chief economist at Comerica Bank. The strong domestic demand, as reflected by the high imports, indicates the economy's resilience. However, this could also lead to front-loading of imports in anticipation of higher tariffs, particularly on goods from China. The market reaction was cautious, with financial markets seeing less than a 50 per cent chance of a half-percentage-point interest rate cut in September. Hence, the U.S. economy is navigating a period of transition, with the labor market easing and the trade deficit widening. These trends will be closely watched by policymakers and investors as they assess the need for monetary policy adjustments and the overall health of the economy.

US job openings hit 3.5-year low as labor market cools, trade deficit widens

The number of Americans filing new claims for unemployment benefits fell sharply last week, according to Reuters, easing fears of a possible slowdown in the US labour market.

In a boost to the US labour market, the Labor Department said on Thursday that initial claims for state unemployment benefits dropped 17,000 to a seasonally adjusted 233,000 for the week ended August 3.

This was the largest decline in almost 11 months and better than economists' expectations of 240,000 claims.

The drop in claims for state unemployment benefits came on the heels of a surprise spike the week before that was probably driven by seasonal shutdowns at motor vehicle plants as well as effects from Hurricane Beryl.

Claims from the previous week were revised slightly higher to 250,000 from the previously reported 249,000.

The better-than-expected jobless claims data lifted financial markets. US equities advanced, while benchmark Treasury yields climbed above 4 per cent.

The US dollar was also higher against a basket of currencies following the release of the data.

Marc Chandler, chief market strategist at Bannockburn Global Forex, commented, "The talk of an imminent recession seems wide of the mark.". Investors scaled back their expectations for a drastic interest rate cut by the Fed any time soon.

Bets on a 50 basis point rate cut in September fell to 58 per cent from 70 per cent before the data was released.

Much of the uptick in claims since June has been blamed on temporary factors, such as auto plant retooling and bad weather.

Claims dropped the most in Michigan and Missouri, two states with significant motor vehicle assembly operations.

Automakers usually idle their assembly lines for retooling during July to bring on new models, a factor that makes for volatility in jobless claims. Although claims have been lingering toward the higher end of this year's range, layoffs have generally remained low.

Government data for June showed the layoff rate was the lowest in over two years.

The slowing labour market seems to be largely a function of less aggressive hiring as interest rate hikes by the Fed in 2022 and 2023 dampen demand.

The Fed is looking closely at claims as a share of the labour force—the claims ratio—for evidence of labour market health.

Labour force growth has generally kept pace with the modest increase in claims, which has changed little from pre-pandemic levels.

Indeed, last week the Fed voted to keep its benchmark overnight interest rate within the 5.25 per cent-5.50 per cent range but signaled a possible cut of borrowing costs at its September meeting.

While a positive jobs-claims outcome, some caution remains. The number of beneficiaries due to continuing claims and the number of people continuing to receive benefits after an initial week of aid measure of hiring trends was 6,000 to a seasonally adjusted 1.875 million in the week ending July 27, continuing an upward trend.

If the data deteriorates quickly from here, the Fed could take more decisive action in September and cut by half a per cent," said Jeffrey Roach, chief economist at LPL Financial, urging investors not to overreact to one report.

In other economic news, the Commerce Department's Census Bureau reported that US wholesale inventories increased by 0.2 per cent in June, adding to economic growth in the second quarter.

The rise followed a 0.5 per cent increase in May. Inventories, a major contribution to gross domestic product, added 0.82 percentage points to GDP growth in the April-June quarter, helping to offset a 0.72 percentage point drag from the wider trade gap.

Wholesale motor vehicle inventories climbed 0.8 percent in June while wholesale inventories of less autos advanced by 0.1 percent.

Sales at wholesalers dropped 0.6 per cent in June after a 0.3 per cent rise in May, suggesting there are some residual issues in the wholesale sector.

The number of Americans filing new claims for unemployment benefits fell sharply last week, according to Reuters, easing fears of a possible slowdown in the US labour market.

The number of Americans filing new claims for unemployment benefits fell sharply last week, according to Reuters, easing fears of a possible slowdown in the US labour market. In a boost to the US labour market, the Labor Department said on Thursday that initial claims for state unemployment benefits dropped 17,000 to a seasonally adjusted 233,000 for the week ended August 3. This was the largest decline in almost 11 months and better than economists' expectations of 240,000 claims. The drop in claims for state unemployment benefits came on the heels of a surprise spike the week before that was probably driven by seasonal shutdowns at motor vehicle plants as well as effects from Hurricane Beryl. Claims from the previous week were revised slightly higher to 250,000 from the previously reported 249,000. The better-than-expected jobless claims data lifted financial markets. US equities advanced, while benchmark Treasury yields climbed above 4 per cent. The US dollar was also higher against a basket of currencies following the release of the data. Marc Chandler, chief market strategist at Bannockburn Global Forex, commented, "The talk of an imminent recession seems wide of the mark.". Investors scaled back their expectations for a drastic interest rate cut by the Fed any time soon. Bets on a 50 basis point rate cut in September fell to 58 per cent from 70 per cent before the data was released. Much of the uptick in claims since June has been blamed on temporary factors, such as auto plant retooling and bad weather. Claims dropped the most in Michigan and Missouri, two states with significant motor vehicle assembly operations. Automakers usually idle their assembly lines for retooling during July to bring on new models, a factor that makes for volatility in jobless claims. Although claims have been lingering toward the higher end of this year's range, layoffs have generally remained low. Government data for June showed the layoff rate was the lowest in over two years. The slowing labour market seems to be largely a function of less aggressive hiring as interest rate hikes by the Fed in 2022 and 2023 dampen demand. The Fed is looking closely at claims as a share of the labour force—the claims ratio—for evidence of labour market health. Labour force growth has generally kept pace with the modest increase in claims, which has changed little from pre-pandemic levels. Indeed, last week the Fed voted to keep its benchmark overnight interest rate within the 5.25 per cent-5.50 per cent range but signaled a possible cut of borrowing costs at its September meeting. While a positive jobs-claims outcome, some caution remains. The number of beneficiaries due to continuing claims and the number of people continuing to receive benefits after an initial week of aid measure of hiring trends was 6,000 to a seasonally adjusted 1.875 million in the week ending July 27, continuing an upward trend. If the data deteriorates quickly from here, the Fed could take more decisive action in September and cut by half a per cent," said Jeffrey Roach, chief economist at LPL Financial, urging investors not to overreact to one report. In other economic news, the Commerce Department's Census Bureau reported that US wholesale inventories increased by 0.2 per cent in June, adding to economic growth in the second quarter. The rise followed a 0.5 per cent increase in May. Inventories, a major contribution to gross domestic product, added 0.82 percentage points to GDP growth in the April-June quarter, helping to offset a 0.72 percentage point drag from the wider trade gap. Wholesale motor vehicle inventories climbed 0.8 percent in June while wholesale inventories of less autos advanced by 0.1 percent. Sales at wholesalers dropped 0.6 per cent in June after a 0.3 per cent rise in May, suggesting there are some residual issues in the wholesale sector.

US jobless claims fall sharply, easing recession fears

A recent report by outplacement firm Challenger, Gray &amp; Christmas reveals that job cut announcements in the United States skyrocketed in January, reaching the highest level in a decade. The data indicates a 136 per cent surge from December, with announced layoffs totalling 82,307. This unsettling spike marks the most substantial monthly increase since March 2023.<o:p></o:p>

While on a yearly basis, the report presents a 20 per cent decline in announced job cuts compared to January 2023, the financial and technology sectors witnessed a drastic rise. Employers in the financial industry announced a significant 23,238 job cuts, more than doubling the figures from the previous year. <o:p></o:p>

According to Andrew Challenger, Senior Vice President of Challenger, Gray &amp; Christmas, Inc., the surge is attributed to a combination of factors. <o:p></o:p>

He notes, "It is also an election year, and companies begin to plan for potential policy changes that may impact their industries. However, these layoffs are also driven by broader economic trends and a strategic shift towards increased automation and AI adoption in various sectors, though in most cases, companies point to cost-cutting as the main driver for layoffs."<o:p></o:p>

The report indicates that the financial and technology sectors were the hardest hit, with employers frequently citing "restructuring" and the closure of plants, units, or stores as the primary reasons for layoffs. Notably, the earnings reporting season in January witnessed several prominent companies, including United Parcel Service, unveiling plans to shed jobs.<o:p></o:p>

The technology giants Amazon, Alphabet, and Microsoft also announced job reductions, aligning with a broader trend in the sector. A memo published on January 30 by digital payment heavyweight PayPal Holdings Inc. disclosed a 9 per cent cut in its workforce, with President and CEO Alex Chriss emphasizing the company's priority to "right-size."<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

A recent report by outplacement firm Challenger, Gray & Christmas reveals that job cut announcements in the United States skyrocketed in January, reaching the highest level in a decade.

A recent report by outplacement firm Challenger, Gray & Christmas reveals that job cut announcements in the United States skyrocketed in January, reaching the highest level in a decade. The data indicates a 136 per cent surge from December, with announced layoffs totalling 82,307. This unsettling spike marks the most substantial monthly increase since March 2023. While on a yearly basis, the report presents a 20 per cent decline in announced job cuts compared to January 2023, the financial and technology sectors witnessed a drastic rise. Employers in the financial industry announced a significant 23,238 job cuts, more than doubling the figures from the previous year. According to Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc., the surge is attributed to a combination of factors. He notes, "It is also an election year, and companies begin to plan for potential policy changes that may impact their industries. However, these layoffs are also driven by broader economic trends and a strategic shift towards increased automation and AI adoption in various sectors, though in most cases, companies point to cost-cutting as the main driver for layoffs." The report indicates that the financial and technology sectors were the hardest hit, with employers frequently citing "restructuring" and the closure of plants, units, or stores as the primary reasons for layoffs. Notably, the earnings reporting season in January witnessed several prominent companies, including United Parcel Service, unveiling plans to shed jobs. The technology giants Amazon, Alphabet, and Microsoft also announced job reductions, aligning with a broader trend in the sector. A memo published on January 30 by digital payment heavyweight PayPal Holdings Inc. disclosed a 9 per cent cut in its workforce, with President and CEO Alex Chriss emphasizing the company's priority to "right-size." (With inputs from Reuters)

US job cuts soar in January, financial and tech sectors hit hard: Report

In June, hiring in the United States slowed down. As per a US Labour Department statement released on Friday, this signals a cooling of the American economy before an upcoming interest rate decision.

As per an AFP report, the figures fell below analysts' expectations, providing some relief for the US Federal Reserve as it considers a return to interest rate hikes later this month that will help address persistent inflation above its long-term target of two per cent.

<h2>What the US Labour Department said</h2>

According to the Labour Department, the world's largest economy added 209,000 jobs last month, a decline from the revised figure of 306,000 in May. However, the unemployment rate slightly decreased to 3.6 per cent, remaining close to historically low levels.

The number of new jobs created fell short of the median expectation of 240,000 in a survey conducted by MarketWatch, while the unemployment rate aligned with predictions.

Also read | <a href="https://www.wionews.com/business-economy/two-bangladeshi-banks-introduce-indian-rupee-trade-transactions-to-bolster-foreign-reserves-613220">Two Bangladeshi banks introduce Indian rupee trade transactions to bolster foreign reserves</a>

However, despite the slowdown in job creation, experts believe that the Fed is unlikely to postpone another interest rate hike at its upcoming meeting.

Talking to AFP, Oxford Economics' lead US economist, Oren Klachkin, said that "It's a step in the right direction but we're not near the level that we would need to see to be convinced that the labour market is significantly cooling down".

Although job growth has eased, average hourly earnings increased by 0.4 per cent on a monthly basis and rose by 4.4 per cent annually.

<h2>'Bidenomics in action'</h2>

President Joe Biden referred to Friday's jobs report as evidence of his economic policies, stating that the economy added over 200,000 jobs in June, totalling 13.2 million jobs since he took office.

"That's more jobs added in two and a half years than any president has ever created in a four-year term," bragged Biden.

Also read | <a href="https://www.wionews.com/world/in-his-latest-bidenomics-speech-biden-touts-achievements-613035">In his latest 'Bidenomics' speech, Biden touts achievements</a>

The employment growth primarily came from sectors such as government, healthcare, social assistance, and construction.

<h2>A hike in June is certain</h2>

Minutes from the Fed's last rate decision revealed that several members of its rate-setting committee supported an interest rate hike in June to address high inflation.

AFP reports that while ultimately, the Federal Open Market Committee (FOMC) voted to pause the consecutive rate increases, it indicated the likelihood of two additional increases by the end of the year to bring inflation back down.

KPMG's chief economist, Diane Swonk, said that the Fed is expected to raise rates by at least another half per cent before pausing, with a hike in July being highly probable. However, futures traders are reportedly assigning a nearly 95 per cent probability that the Fed will raise its base rate by a quarter percentage point at the upcoming meeting on July 25-26, as per data from CME Group.

(With inputs from agencies)

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In June, hiring in the United States slowed down. As per a US Labour Department statement released on Friday, this signals a cooling of the American economy before an upcoming interest rate decision.

In June, hiring in the United States slowed down. As per a US Labour Department statement released on Friday, this signals a cooling of the American economy before an upcoming interest rate decision. As per an AFP report, the figures fell below analysts' expectations, providing some relief for the US Federal Reserve as it considers a return to interest rate hikes later this month that will help address persistent inflation above its long-term target of two per cent. What the US Labour Department said According to the Labour Department, the world's largest economy added 209,000 jobs last month, a decline from the revised figure of 306,000 in May. However, the unemployment rate slightly decreased to 3.6 per cent, remaining close to historically low levels. The number of new jobs created fell short of the median expectation of 240,000 in a survey conducted by MarketWatch, while the unemployment rate aligned with predictions. Also read | Two Bangladeshi banks introduce Indian rupee trade transactions to bolster foreign reserves However, despite the slowdown in job creation, experts believe that the Fed is unlikely to postpone another interest rate hike at its upcoming meeting. Talking to AFP, Oxford Economics' lead US economist, Oren Klachkin, said that "It's a step in the right direction but we're not near the level that we would need to see to be convinced that the labour market is significantly cooling down". Although job growth has eased, average hourly earnings increased by 0.4 per cent on a monthly basis and rose by 4.4 per cent annually. 'Bidenomics in action' President Joe Biden referred to Friday's jobs report as evidence of his economic policies, stating that the economy added over 200,000 jobs in June, totalling 13.2 million jobs since he took office. "That's more jobs added in two and a half years than any president has ever created in a four-year term," bragged Biden. Also read | In his latest 'Bidenomics' speech, Biden touts achievements The employment growth primarily came from sectors such as government, healthcare, social assistance, and construction. A hike in June is certain Minutes from the Fed's last rate decision revealed that several members of its rate-setting committee supported an interest rate hike in June to address high inflation. AFP reports that while ultimately, the Federal Open Market Committee (FOMC) voted to pause the consecutive rate increases, it indicated the likelihood of two additional increases by the end of the year to bring inflation back down. KPMG's chief economist, Diane Swonk, said that the Fed is expected to raise rates by at least another half per cent before pausing, with a hike in July being highly probable. However, futures traders are reportedly assigning a nearly 95 per cent probability that the Fed will raise its base rate by a quarter percentage point at the upcoming meeting on July 25-26, as per data from CME Group. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US hiring falls short of expectations in June, signalling cooling economy ahead of Fed decision

America's "Great Resignation" which began during the pandemic continues as the US Bureau of Labour Statistics in a report said 4.5 million Americans quit their jobs in March in professional and business services including in the construction industry.

The bureau said layoffs were "little changed at 1.4 million". "In March, the job openings rate increased in establishments with 50 to 249 employees and establishments with 250 to 999 employees," it said.

<a href="https://www.wionews.com/world/great-resignation-is-not-slowing-and-is-here-to-stay-as-workers-put-personal-lives-before-jobs-report-468406">Also Read:&nbsp;Great Resignation is not slowing</a>

Job openings in the US increased in retail and durable goods manufacturing however it decreased in transportation, warehousing and&nbsp;utilities.

Local and state government education and federal government jobs fell even as job openings increased in the southern region, the data revealed.

In fact, the bureau stated that the number of "job openings was little changed at 11.5 million" which was the "highest level in the history of the series which began in December 2000."

Watch:&nbsp;US manufacturing activity slowest in more than a year as workers quit

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The agency maintained that total hires in the past year until March totalled 77.7 million "yielding a net employment gain of 6.3 million."

In 2021, the bureau had said 47 million Americans had quit their jobs which was the most in history giving rise to the "Great Resignation" phenomenon. The latest report suggests the trend continues well into 2022 as people continue to shift&nbsp;their work patterns&nbsp;due to the pandemic.

Several employees quit jobs in America as others joined various sectors while working from home signalling a shift in changing work-life balance as Microsoft's Work Trend Index indicated 53 per cent people were focussing on mental health and wellbeing.

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America's "Great Resignation" which began during the pandemic continues as the US Bureau of Labour Statistics in a report said 4.5 million Americans quit their jobs in March in professional and business services including in the construction industry.

America's "Great Resignation" which began during the pandemic continues as the US Bureau of Labour Statistics in a report said 4.5 million Americans quit their jobs in March in professional and business services including in the construction industry. The bureau said layoffs were "little changed at 1.4 million". "In March, the job openings rate increased in establishments with 50 to 249 employees and establishments with 250 to 999 employees," it said. Also Read: Great Resignation is not slowing Job openings in the US increased in retail and durable goods manufacturing however it decreased in transportation, warehousing and utilities. Local and state government education and federal government jobs fell even as job openings increased in the southern region, the data revealed. In fact, the bureau stated that the number of "job openings was little changed at 11.5 million" which was the "highest level in the history of the series which began in December 2000." Watch: US manufacturing activity slowest in more than a year as workers quit The agency maintained that total hires in the past year until March totalled 77.7 million "yielding a net employment gain of 6.3 million." In 2021, the bureau had said 47 million Americans had quit their jobs which was the most in history giving rise to the "Great Resignation" phenomenon. The latest report suggests the trend continues well into 2022 as people continue to shift their work patterns due to the pandemic. Several employees quit jobs in America as others joined various sectors while working from home signalling a shift in changing work-life balance as Microsoft's Work Trend Index indicated 53 per cent people were focussing on mental health and wellbeing. WATCH WION LIVE HERE

'Great Resignation' in US: 4.5 million Americans quit jobs in March

‘The great resignation’ continues to gain steam in the United States, as over 4 million Americans, about 3% of the workforce, continue to churn out resignations for the second straight month.

The growing number of vacancies is now forcing companies to look elsewhere as they are coming out with attractive offers to quickly fill up the record job openings.

US’ Labor Department on Friday said that 4.4 million people quit their jobs in September, which is up from 4.3 million in August, and far above the pre-pandemic level of 3.6 million.

There were 10.4 million job openings, down from 10.6 million in August, which was revised higher, the data shows.

Also read |<a href="https://www.wionews.com/world/more-than-4-million-americans-quit-jobs-in-august-report-420516">&nbsp;More than 4 million Americans quit jobs in August: Report</a>

Moreover, the data states that there are about 5 million fewer people looking for jobs compared with pre-pandemic trends, making it much harder for employers to hire.

The decline in the workforce is sharply visible in those industries which are made up of in-person service jobs, such as restaurants, hotels, and retail, and factories where people work in close proximity.

The economists argue that this trend reflects that some people are quitting solely out of fear of contracting COVID-19.

Watch

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Apart from that, other possible reasons attributed to mass resignations include better social safety nets like unemployment aid, and people looking for better paying jobs.

Goldman Sachs, in a research note, on Thursday estimated that most of the 5 million are older Americans who have decided to retire. Only about 1.7 million are aged 25 through 54, which economists consider prime working years.

Also read |&nbsp;<a href="https://www.wionews.com/trending/find-out-the-top-paying-jobs-in-us-with-no-work-experience-416142">Find out the top paying jobs in US with no work experience</a>

Goldman estimates that most of those people in their prime working years will return to work in the coming months, but that would still leave a much smaller workforce than before the pandemic.

Businesses in other countries are facing similar challenges, leading to pay gains and higher inflation in countries like Canada and the United Kingdom, according to news agency AP.

However, in developing countries like India, there were no signs of mass resignations largely due to the absence of social security and unemployment benefits.

(With inputs from agencies)

‘The great resignation’ continues to gain steam in the United States, as over 4 million Americans, about 3% of the workforce, continue to churn out resignations for the second straight month.

‘The great resignation’ continues to gain steam in the United States, as over 4 million Americans, about 3% of the workforce, continue to churn out resignations for the second straight month. The growing number of vacancies is now forcing companies to look elsewhere as they are coming out with attractive offers to quickly fill up the record job openings. US’ Labor Department on Friday said that 4.4 million people quit their jobs in September, which is up from 4.3 million in August, and far above the pre-pandemic level of 3.6 million. There were 10.4 million job openings, down from 10.6 million in August, which was revised higher, the data shows. Also read | More than 4 million Americans quit jobs in August: Report Moreover, the data states that there are about 5 million fewer people looking for jobs compared with pre-pandemic trends, making it much harder for employers to hire. The decline in the workforce is sharply visible in those industries which are made up of in-person service jobs, such as restaurants, hotels, and retail, and factories where people work in close proximity. The economists argue that this trend reflects that some people are quitting solely out of fear of contracting COVID-19. Watch Apart from that, other possible reasons attributed to mass resignations include better social safety nets like unemployment aid, and people looking for better paying jobs. Goldman Sachs, in a research note, on Thursday estimated that most of the 5 million are older Americans who have decided to retire. Only about 1.7 million are aged 25 through 54, which economists consider prime working years. Also read | Find out the top paying jobs in US with no work experience Goldman estimates that most of those people in their prime working years will return to work in the coming months, but that would still leave a much smaller workforce than before the pandemic. Businesses in other countries are facing similar challenges, leading to pay gains and higher inflation in countries like Canada and the United Kingdom, according to news agency AP. However, in developing countries like India, there were no signs of mass resignations largely due to the absence of social security and unemployment benefits. (With inputs from agencies)

‘The great resignation’: Over 4 million Americans quit their jobs in September alone

Indicating that the US labour market could take years to recover from the COVID-19 crisis. Fresh hiring in the world's largest economy has hit an all-time low. Watch report.

Coronavirus pandemic: 77 MN US workers lost jobs in April

As the situation keeps getting worse in the US because of coronavirus, the economy has been on a downward spiral. A lot of people have lost their jobs due to the extended partial lockdowns. However, it is getting more problematic for people who are in the country on an H-1B visa.

As many as 250,000 guest workers could lose their legal status by the end of June, according to Jeremy Neufeld, an immigration policy analyst with the Washington D.C.-based think tank Niskanen Center. These workers are seeking a green card in the U.S., and about 200,000 of them on are on H-1B visas.

<a href="https://www.wionews.com/world/trump-to-order-meat-processing-plants-to-stay-open-even-as-they-become-coronavirus-hot-spots-295427">Also read: Trump to order meat processing plants to stay open even as they become coronavirus hot spots</a>

Thousands of other immigrants, who are not seeking resident status, may also be forced to return home if the visa issues are not solved in the next few weeks. As per the conditions of the H-1B visa, a specific company is responsible for paying a specific amount to the employee. However, furloughing employees, reducing their wages, and in some cases allowing them to work from home violates these visa requirements. The workers on H-1B visa are usually given 60 days, after termination, to find another job, transfer to a different visa or leave the country.&nbsp;

The same visa issues are rising even for the workers who have not lost their job but have to get their visas renewed during this pandemic.

<a href="https://www.wionews.com/world/white-house-coronavirus-coordinator-reveals-breakthrough-which-us-requires-295348">Also read: White House coronavirus coordinator reveals 'breakthrough' which the US requires</a>

In a letter sent to the State and Homeland Security departments on April 17, TechNet, a lobbying group whose members include Apple, Amazon, Facebook, Google and Microsoft, joined a coalition of trade groups calling for relief for foreign-born workers. The letter requested a delay in work authorization expiration dates until at least Sept. 10. “Without action, these issues will lead to hundreds of thousands of unfilled jobs and have profound negative economic effects,” the letter read, as reported ina. media organization.

The tensions have been rising in the country for all immigrants as Donald Trump, on April 20, tweeted that he planned a temporary ban on all immigration to protect American jobs, and announced an executive order blocking most people coming from outside the U.S. from receiving green cards for 60 days.&nbsp;

Some companies are trying to help their abroad-born workers by keeping them on the payroll and firing the US-born employees. Whereas some are doing the reverse and letting the abroad-born employees go or keeping them on furlough. However, there is risk in either approach, because employers who treat workers differently based on their immigration status expose themselves to potential discrimination lawsuits, according to immigration and employment lawyer Rebecca Bernhard, the partner at Dorsey &amp; Whitney LLP.

As the situation keeps getting worse in the US because of coronavirus, the economy has been on a downward spiral. A lot of people have lost their jobs due to the extended partial lockdowns.

As the situation keeps getting worse in the US because of coronavirus, the economy has been on a downward spiral. A lot of people have lost their jobs due to the extended partial lockdowns. However, it is getting more problematic for people who are in the country on an H-1B visa. As many as 250,000 guest workers could lose their legal status by the end of June, according to Jeremy Neufeld, an immigration policy analyst with the Washington D.C.-based think tank Niskanen Center. These workers are seeking a green card in the U.S., and about 200,000 of them on are on H-1B visas. Also read: Trump to order meat processing plants to stay open even as they become coronavirus hot spots Thousands of other immigrants, who are not seeking resident status, may also be forced to return home if the visa issues are not solved in the next few weeks. As per the conditions of the H-1B visa, a specific company is responsible for paying a specific amount to the employee. However, furloughing employees, reducing their wages, and in some cases allowing them to work from home violates these visa requirements. The workers on H-1B visa are usually given 60 days, after termination, to find another job, transfer to a different visa or leave the country. The same visa issues are rising even for the workers who have not lost their job but have to get their visas renewed during this pandemic. Also read: White House coronavirus coordinator reveals 'breakthrough' which the US requires In a letter sent to the State and Homeland Security departments on April 17, TechNet, a lobbying group whose members include Apple, Amazon, Facebook, Google and Microsoft, joined a coalition of trade groups calling for relief for foreign-born workers. The letter requested a delay in work authorization expiration dates until at least Sept. 10. “Without action, these issues will lead to hundreds of thousands of unfilled jobs and have profound negative economic effects,” the letter read, as reported ina. media organization. The tensions have been rising in the country for all immigrants as Donald Trump, on April 20, tweeted that he planned a temporary ban on all immigration to protect American jobs, and announced an executive order blocking most people coming from outside the U.S. from receiving green cards for 60 days. Some companies are trying to help their abroad-born workers by keeping them on the payroll and firing the US-born employees. Whereas some are doing the reverse and letting the abroad-born employees go or keeping them on furlough. However, there is risk in either approach, because employers who treat workers differently based on their immigration status expose themselves to potential discrimination lawsuits, according to immigration and employment lawyer Rebecca Bernhard, the partner at Dorsey & Whitney LLP.

American dream comes crashing down as over 200,000 H-1B workers face the threat of losing legal status by June

Struggling to contain the Coronavirus, The US has now suspended the entry of outsiders. Critics say the decision is a case of misplaced priorities. Is this President Donald Trump's best bet against fighting the pandemic?

Coronavirus: United States suspends immigration temporarily | Gravitas

US job creation soared last month as hospitals, hotels and schools raced to add new workers, wiping away fears that November would be a lackluster month, according to a key government report Friday.

Payrolls also got a boost as autoworkers were back on the job after a six-week nationwide strike at General Motors plants, according to the Labor Department.

The surprise hiring burst is sure to delight President Donald Trump as he faces impeachment and a bitter reelection campaign.

US firms added a massive 266,000 net new positions, shattering economists' expectations, while the jobless rate fell a tenth of a point to 3.5 per cent, mainly because of a small decline in the workforce

Job gains in September and October also were revised upward by a total of 41,000, underscoring the strength of labor markets.

Economists in recent days had begun to worry that America's appetite for workers was on the wane, as some signs pointed to slackening demand for labor as well as a dwindling supply of workers.

But the continued hiring bonanza should bolster the Federal Reserve's decision to keep the benchmark interest rate stable after three cuts this year, with central bankers believing more stimulus is unnecessary.

Job creation has slowed this year, however, as employers on average have added 180,000 workers a month, down from the 223,000 average monthly gains in 2018.

Wages crept higher in November but more slowly than forecast.

Meanwhile, the dip in the jobless rate came with a drop in labor force as people left the job hunt or retired.

&nbsp;

US job creation soared last month as hospitals, hotels and schools raced to add new workers, wiping away fears that November would be a lackluster month, according to a key government report Friday.

US job creation soared last month as hospitals, hotels and schools raced to add new workers, wiping away fears that November would be a lackluster month, according to a key government report Friday. Payrolls also got a boost as autoworkers were back on the job after a six-week nationwide strike at General Motors plants, according to the Labor Department. The surprise hiring burst is sure to delight President Donald Trump as he faces impeachment and a bitter reelection campaign. US firms added a massive 266,000 net new positions, shattering economists' expectations, while the jobless rate fell a tenth of a point to 3.5 per cent, mainly because of a small decline in the workforce Job gains in September and October also were revised upward by a total of 41,000, underscoring the strength of labor markets. Economists in recent days had begun to worry that America's appetite for workers was on the wane, as some signs pointed to slackening demand for labor as well as a dwindling supply of workers. But the continued hiring bonanza should bolster the Federal Reserve's decision to keep the benchmark interest rate stable after three cuts this year, with central bankers believing more stimulus is unnecessary. Job creation has slowed this year, however, as employers on average have added 180,000 workers a month, down from the 223,000 average monthly gains in 2018. Wages crept higher in November but more slowly than forecast. Meanwhile, the dip in the jobless rate came with a drop in labor force as people left the job hunt or retired.

US adds 266,000 jobs in November, unemployment falls to 3.5%

The dollar rose on Friday after three straight days of losses, as investors took comfort in a US&nbsp;non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared.

The greenback hit session highs against the yen and euro following the jobs report, after trading lower for most of the session.

Data showed that US&nbsp;nonfarm payrolls increased by 136,000 jobs last month. August data was revised to show 168,000 jobs created instead of the previously reported 130,000 positions. Economists polled by Reuters had forecast payrolls would increase by 145,000 jobs in September.

The unemployment rate dropped to a near 50-year low of 3.5 per cent.

"Going into it and considering what we saw with the two ISM surveys, it could have been a lot worse. It's probably just right for the market and <a href="https://www.wionews.com/world/slower-us-job-growth-expected-but-enough-to-support-economy-247977">not as dire as many people expected</a>," said John Velis, global macro strategist, at BNY Mellon in New York.

"It doesn't mean that the economy and the jobs market are falling off a cliff. On the other hand, it's not strong enough that it's going to take out this additional Fed easing that has been priced into the curve the last few days."

A drop in US&nbsp;unemployment in September pushed traders of US&nbsp;short-term interest rate futures on Friday to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings.

The jobs data was a big relief to dollar bulls after two weak reports that heightened US&nbsp;recession fears.

On Thursday, a survey from the US&nbsp;Institute for Supply Management (ISM) showed its non-manufacturing activity index falling to 52.6 in September, the lowest since August 2016 and down from 56.4 in August.

The <a href="https://www.wionews.com/business-economy/dollar-pinned-down-after-poor-us-manufacturing-data-pound-slips-253220">non-manufacturing data</a> came on the heels of ISM's survey on Tuesday on manufacturing that showed activity plunging to more than 10-year lows.

In morning trading, the dollar index &nbsp;was up 0.1 per cent&nbsp;at 98.933, rising slightly against the yen to 106.98 yen &lt;JPY=&gt;.

The euro was modestly higher though versus the dollar at $1.0973.&nbsp;

Elsewhere, the Australian dollar&nbsp;and the New Zealand dollar were off their highs after the US&nbsp;report.

The dollar rose on Friday after three straight days of losses, as investors took comfort in a US non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared.

The dollar rose on Friday after three straight days of losses, as investors took comfort in a US non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared. The greenback hit session highs against the yen and euro following the jobs report, after trading lower for most of the session. Data showed that US nonfarm payrolls increased by 136,000 jobs last month. August data was revised to show 168,000 jobs created instead of the previously reported 130,000 positions. Economists polled by Reuters had forecast payrolls would increase by 145,000 jobs in September. The unemployment rate dropped to a near 50-year low of 3.5 per cent. "Going into it and considering what we saw with the two ISM surveys, it could have been a lot worse. It's probably just right for the market and not as dire as many people expected," said John Velis, global macro strategist, at BNY Mellon in New York. "It doesn't mean that the economy and the jobs market are falling off a cliff. On the other hand, it's not strong enough that it's going to take out this additional Fed easing that has been priced into the curve the last few days." A drop in US unemployment in September pushed traders of US short-term interest rate futures on Friday to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings. The jobs data was a big relief to dollar bulls after two weak reports that heightened US recession fears. On Thursday, a survey from the US Institute for Supply Management (ISM) showed its non-manufacturing activity index falling to 52.6 in September, the lowest since August 2016 and down from 56.4 in August. The non-manufacturing data came on the heels of ISM's survey on Tuesday on manufacturing that showed activity plunging to more than 10-year lows. In morning trading, the dollar index was up 0.1 per cent at 98.933, rising slightly against the yen to 106.98 yen <JPY=>. The euro was modestly higher though versus the dollar at $1.0973. Elsewhere, the Australian dollar and the New Zealand dollar were off their highs after the US report.

Dollar rises after US jobs come out better than worst expectations

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Twitter and Facebook said on Monday they had dismantled a state-backed social media campaign originating in mainland China that sought to undermine protests in Hong Kong.

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Some 3,500 Rohingya refugees in Bangladesh have been cleared to return home to Myanmar beginning this week, a top official said Monday, nearly two years after a military crackdown sparked their exodus.

<a href="https://www.wionews.com/world/white-house-mulling-tax-cut-to-avoid-recession-report-244271">White House mulling tax cut to avoid recession: Report</a>

The White House is considering cutting taxes or revering tariffs to head off a recession, US media reported on Monday, despite President Donald Trump's insistence on the economy's health.

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Britain said Monday it will immediately end freedom of movement for people from the European Union after Brexit on October 31, in a policy shift under Prime Minister Boris Johnson.

<a href="https://www.wionews.com/world/jeffrey-epstein-wrote-will-two-days-before-death-puts-578-million-in-assets-into-trust-with-unnamed-beneficiaries-report-244262">Jeffrey Epstein wrote will two days before death, puts $578 million in assets into trust with unnamed beneficiaries: Report</a>

Disgraced financier Jeffrey Epstein wrote a will two days before he died, putting his $578 million in assets into a trust with unnamed beneficiaries, the New York Post reported Monday.

Twitter, Facebook dismantle social media campaign in China that tried to undermine Hong Kong protests Twitter and Facebook said on Monday they had dismantled a state-backed social media campaign originating in mainland China that sought to undermine protests in Hong Kong.

Twitter, Facebook dismantle social media campaign in China that tried to undermine Hong Kong protests Twitter and Facebook said on Monday they had dismantled a state-backed social media campaign originating in mainland China that sought to undermine protests in Hong Kong. Around 3,500 Rohingya cleared to return home to Myanmar starting this week: Source Some 3,500 Rohingya refugees in Bangladesh have been cleared to return home to Myanmar beginning this week, a top official said Monday, nearly two years after a military crackdown sparked their exodus. White House mulling tax cut to avoid recession: Report The White House is considering cutting taxes or revering tariffs to head off a recession, US media reported on Monday, despite President Donald Trump's insistence on the economy's health. UK to immediately end freedom of movement for people from European Union after Brexit Britain said Monday it will immediately end freedom of movement for people from the European Union after Brexit on October 31, in a policy shift under Prime Minister Boris Johnson. Jeffrey Epstein wrote will two days before death, puts $578 million in assets into trust with unnamed beneficiaries: Report Disgraced financier Jeffrey Epstein wrote a will two days before he died, putting his $578 million in assets into a trust with unnamed beneficiaries, the New York Post reported Monday.

News brief: Big stories of the day

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar.

On Wall Street, the S&amp;P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc.

Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction.

"The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy.

In the currency market, fading expectations of aggressive easing by the Fed helped the dollar.

The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19.

The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month.

The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday.

Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar. On Wall Street, the S&P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc. Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction. "The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management. Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy. In the currency market, fading expectations of aggressive easing by the Fed helped the dollar. The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19. The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month. The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday. Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks hobbled by fading expectations for aggressive Fed rate cut

The United States had another giant month of job creation in April, confirming the strength of the world's largest economy as President Donald Trump prepares to fend off challengers in next year's election.

Government data showed continued vigour in the vast services sector, with unemployment falling to a level not seen since 1969, helping allay fears of a slowdown -- although the labour force shrank.

As the second quarter began, employers scooped up workers in construction, health care, computer systems design, administrative support and other service industries, adding a total of 263,000 net new positions for the month, the data showed.

That was well above the result economists expected, and worker pay continued to climb, although at a slower pace, according to the closely-watched report from the Labor Department.

The unemployment rate fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force.

The jobless rate for Hispanics fell to the lowest level on record, as did a broader measure of unemployment that includes discouraged workers.

"This economy is roaring," Vice President Mike Pence told CNBC shortly after the data was released, attributing the performance squarely to Trump's economic agenda of tax cuts and slashed regulation.

Average hourly pay also rose by 3.2 per cent over April of last year, the ninth consecutive month with annual growth above three per cent, again outstripping inflation.

Compared to March, however, the increase in pay was only 0.2 per cent, shy of forecasts, but economists said this may have been due to distortions from the Easter holiday.

Manufacturing lags

Government hiring also was the strongest in eight months, with 27,000 jobs created -- likely due in part to hiring for the 2020 US census. Financial services also continued to add employees.

But hiring in the manufacturing sector was a weak spot for the third straight month, ending last year's long growth streak. Durable goods employment was flat and the auto sector continuing to shed jobs.

In the 12 months prior to February, the manufacturing sector had added an average of 22,000 jobs a month, according to the report.

The retail sector also suffered yet more job losses, with 12,000 positions cut.

Hiring in mining, which includes oil and gas, as well as utilities was little changed, the data showed.

There were other signs of weakness as well.

"If one is scouring the report for negatives, one would be the contraction in the workweek and drop in hours worked," RDQ Economics said in a client note.

"With labour force participation dropping further in April, participation is now flat on a year-over-year basis."

The three-month average for job creation has also fallen for four straight months and now sits at about 169,000 -- below the averages recorded in the same period of 2018 and 2017.

The number of people working part-time for "economic reasons" -- those who want full-time work but cannot get it -- also rose for the second month in a row in May, and at 4.7 million remains above the level from before the Great Recession.

Nevertheless, the brisk hiring should further dim hopes among investors that the Federal Reserve will feel pressure to cut interest rates in the near term.

As unemployment falls to half-century lows and workers become scarce, the continued strength of hiring has confounded predictions that companies would soon run out of people to hire, even as firms nationwide complain they are struggling to fill open positions.

And inflation has for several years defied the usual logic that low unemployment should cause wages and prices to rise.

The opinion is now divided among economists as to whether inflation later this year will at last spring to life and pressure the central bank to bump up lending rates -- the opposite of Trump's very loud recent demands for a drastic interest rate cut.

After several days in the red, Wall Street was cheered by the news, with all three major indices closing higher and the Nasdaq setting a new record high.

The United States had another giant month of job creation in April, confirming the strength of the world's largest economy as President Donald Trump prepares to fend off challengers in next year's election.

The United States had another giant month of job creation in April, confirming the strength of the world's largest economy as President Donald Trump prepares to fend off challengers in next year's election. Government data showed continued vigour in the vast services sector, with unemployment falling to a level not seen since 1969, helping allay fears of a slowdown -- although the labour force shrank. As the second quarter began, employers scooped up workers in construction, health care, computer systems design, administrative support and other service industries, adding a total of 263,000 net new positions for the month, the data showed. That was well above the result economists expected, and worker pay continued to climb, although at a slower pace, according to the closely-watched report from the Labor Department. The unemployment rate fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force. The jobless rate for Hispanics fell to the lowest level on record, as did a broader measure of unemployment that includes discouraged workers. "This economy is roaring," Vice President Mike Pence told CNBC shortly after the data was released, attributing the performance squarely to Trump's economic agenda of tax cuts and slashed regulation. Average hourly pay also rose by 3.2 per cent over April of last year, the ninth consecutive month with annual growth above three per cent, again outstripping inflation. Compared to March, however, the increase in pay was only 0.2 per cent, shy of forecasts, but economists said this may have been due to distortions from the Easter holiday. Manufacturing lags Government hiring also was the strongest in eight months, with 27,000 jobs created -- likely due in part to hiring for the 2020 US census. Financial services also continued to add employees. But hiring in the manufacturing sector was a weak spot for the third straight month, ending last year's long growth streak. Durable goods employment was flat and the auto sector continuing to shed jobs. In the 12 months prior to February, the manufacturing sector had added an average of 22,000 jobs a month, according to the report. The retail sector also suffered yet more job losses, with 12,000 positions cut. Hiring in mining, which includes oil and gas, as well as utilities was little changed, the data showed. There were other signs of weakness as well. "If one is scouring the report for negatives, one would be the contraction in the workweek and drop in hours worked," RDQ Economics said in a client note. "With labour force participation dropping further in April, participation is now flat on a year-over-year basis." The three-month average for job creation has also fallen for four straight months and now sits at about 169,000 -- below the averages recorded in the same period of 2018 and 2017. The number of people working part-time for "economic reasons" -- those who want full-time work but cannot get it -- also rose for the second month in a row in May, and at 4.7 million remains above the level from before the Great Recession. Nevertheless, the brisk hiring should further dim hopes among investors that the Federal Reserve will feel pressure to cut interest rates in the near term. As unemployment falls to half-century lows and workers become scarce, the continued strength of hiring has confounded predictions that companies would soon run out of people to hire, even as firms nationwide complain they are struggling to fill open positions. And inflation has for several years defied the usual logic that low unemployment should cause wages and prices to rise. The opinion is now divided among economists as to whether inflation later this year will at last spring to life and pressure the central bank to bump up lending rates -- the opposite of Trump's very loud recent demands for a drastic interest rate cut. After several days in the red, Wall Street was cheered by the news, with all three major indices closing higher and the Nasdaq setting a new record high.

US job creation surges in April as unemployment hits 49-year low

The tech-rich Nasdaq powered to a fresh record Friday as Wall Street cheered a much better than expected US jobs report for April.

European bourses also advanced following the US report, which set <a href="https://www.wionews.com/world/us-job-creation-surges-in-april-as-unemployment-hits-49-year-low-215776">unemployment at a 49-year low</a>.

"No signs of a slowdown here," said James Knightley, chief international economist at ING.

The US economy added 263,000 net new positions in April, well above the 200,000 forecasts by analysts.

Unemployment fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force, the Labor Department reported.

Even with the positive attributes to the April jobs data, the report showed wage inflation was measured, putting little pressure on the US Federal Reserve to boost interest rates, analysts said.

"Neither too hot nor too cold," said Stephen Innes, head of trading at SPI, calling the US data "another Goldilocks" payroll report.

"The US economy remains in the sweet spot with extremely robust labour markets driving strong consumption growth but apparently without stoking the inflationary fires," he said.

The tech-rich Nasdaq climbed 1.6 per cent to 8,164.00, about two points above a record earlier in the week.

Bourses in London, Paris and Frankfurt advanced modestly.

Despite the strong jobs data, FTN Financial's Chris Low pointed to a report from the Institute for Supply Management that showed slowing services sector activity.&nbsp;

"I don't think everything is quite as rosy as the jobs numbers suggest but for now traders are happy," FTN Financial's Chris Low told AFP.&nbsp;

Low said investors were also cheered by news that Warren Buffett's Berkshire Hathaway had invested in Amazon, which jumped 3.2 per cent.

"It's him (Buffett) signing off the on the US stock market rally," Low said. "It's not like him to make a high-profile buy at a market top."

The billionaire all-star investor disclosed the move in an interview with CNBC. Buffett previously has lamented not getting into Amazon at an earlier stage, blaming "stupidity" for missing the opportunity in a 2017 interview.

In commodities trading on Friday, oil prices rebounded after falling hard on Thursday in the wake of a surprisingly large build in US oil inventories. Some analysts viewed the increase as a reflection of the improved demand outlook for the US following the strong jobs data.

The tech-rich Nasdaq powered to a fresh record Friday as Wall Street cheered a much better than expected US jobs report for April. European bourses also advanced following the US report, which set unemployment at a 49-year low.

The tech-rich Nasdaq powered to a fresh record Friday as Wall Street cheered a much better than expected US jobs report for April. European bourses also advanced following the US report, which set unemployment at a 49-year low. "No signs of a slowdown here," said James Knightley, chief international economist at ING. The US economy added 263,000 net new positions in April, well above the 200,000 forecasts by analysts. Unemployment fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force, the Labor Department reported. Even with the positive attributes to the April jobs data, the report showed wage inflation was measured, putting little pressure on the US Federal Reserve to boost interest rates, analysts said. "Neither too hot nor too cold," said Stephen Innes, head of trading at SPI, calling the US data "another Goldilocks" payroll report. "The US economy remains in the sweet spot with extremely robust labour markets driving strong consumption growth but apparently without stoking the inflationary fires," he said. The tech-rich Nasdaq climbed 1.6 per cent to 8,164.00, about two points above a record earlier in the week. Bourses in London, Paris and Frankfurt advanced modestly. Despite the strong jobs data, FTN Financial's Chris Low pointed to a report from the Institute for Supply Management that showed slowing services sector activity. "I don't think everything is quite as rosy as the jobs numbers suggest but for now traders are happy," FTN Financial's Chris Low told AFP. Low said investors were also cheered by news that Warren Buffett's Berkshire Hathaway had invested in Amazon, which jumped 3.2 per cent. "It's him (Buffett) signing off the on the US stock market rally," Low said. "It's not like him to make a high-profile buy at a market top." The billionaire all-star investor disclosed the move in an interview with CNBC. Buffett previously has lamented not getting into Amazon at an earlier stage, blaming "stupidity" for missing the opportunity in a 2017 interview. In commodities trading on Friday, oil prices rebounded after falling hard on Thursday in the wake of a surprisingly large build in US oil inventories. Some analysts viewed the increase as a reflection of the improved demand outlook for the US following the strong jobs data.

Nasdaq ends at record as global stocks cheers strong US jobs growth

Asian shares pulled back on Monday after US employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed from Friday's three-week low. Japan's Nikkei gained 0.4 per cent in early trade after four consecutive sessions in the red last week.

Wall Street's main indexes posted their biggest weekly decline since the market tumbled at the end of 2018 last week, falling for the fifth consecutive day on Friday on the shocking payrolls data.

The US economy created only 20,000 jobs in February, the weakest reading since September 2017. As a result, bond yields dropped, with the 10-year Treasuries yield hitting a two-month low of 2.607 per cent.

The two-year yield also hit a two-month low of 2.438 per cent, edging near the current Fed funds rate around 2.40 per cent.

Fed funds futures are pricing in more than 20 per cent chance of a rate cut this year.

"The headline reading was so weak that the market could have reacted more aggressively. I would say markets reacted relatively calmly because there were elements that suggest weakness is temporary," said Tomoaki Shishido, fixed income strategist at Nomura Securities.

While jobs growth was weak, average hourly earnings rose 11 cents, or 0.4 per cent, raising the annual increase to 3.4 per cent, the biggest gain since April 2009.

Fed Chair Jerome Powell said on Friday that the central bank will be careful not to shock financial markets as it stabilises its bond portfolio, saying it does not see problems in the US economy that warrant an immediate change in its policy.

He also said the new normal for the Fed's total liabilities may be in the ballpark of 16.5 per cent of GDP.

Chinese data released over the weekend was slightly weaker though hopes for more policy support are likely to cushion any blows.

New bank loans in China fell a bit more than expected in February from a record the previous month, while money supply growth also missed the forecast.

Following the data, China's central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs.

In the currency market, the euro stood at $1.12345, keeping some distance from Thursday's $1.11765 hit after the European Central Bank's surprisingly dovish stance. It was its lowest since late June 2017.

The dollar was softer at 111.12 yen, having peaked at a 2-1/2-month high of 112.135 last Tuesday.

The British pound was wobbly at $1.2986, having fallen to a three-week low of $1.2945 earlier on Monday on nervousness ahead of a crucial week in the UK’s troubled political debate over EU membership, with parliament expected to reject Prime Minister Theresa May's deal in a vote on Tuesday.

If that happens, lawmakers will vote the next day on whether to leave without a deal on March 29. If they reject that, then on Thursday they are due to vote on a "limited" delay.

Oil prices steadied after dipping on Friday on concerns about a slower US economic growth and surging US oil supply.

US West Texas Intermediate (WTI) crude futures rose 0.2 per cent to $56.18 per barrel.

Asian shares pulled back on Monday after US employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound.

Asian shares pulled back on Monday after US employment data raised doubts about the strength of the global economy while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed from Friday's three-week low. Japan's Nikkei gained 0.4 per cent in early trade after four consecutive sessions in the red last week. Wall Street's main indexes posted their biggest weekly decline since the market tumbled at the end of 2018 last week, falling for the fifth consecutive day on Friday on the shocking payrolls data. The US economy created only 20,000 jobs in February, the weakest reading since September 2017. As a result, bond yields dropped, with the 10-year Treasuries yield hitting a two-month low of 2.607 per cent. The two-year yield also hit a two-month low of 2.438 per cent, edging near the current Fed funds rate around 2.40 per cent. Fed funds futures are pricing in more than 20 per cent chance of a rate cut this year. "The headline reading was so weak that the market could have reacted more aggressively. I would say markets reacted relatively calmly because there were elements that suggest weakness is temporary," said Tomoaki Shishido, fixed income strategist at Nomura Securities. While jobs growth was weak, average hourly earnings rose 11 cents, or 0.4 per cent, raising the annual increase to 3.4 per cent, the biggest gain since April 2009. Fed Chair Jerome Powell said on Friday that the central bank will be careful not to shock financial markets as it stabilises its bond portfolio, saying it does not see problems in the US economy that warrant an immediate change in its policy. He also said the new normal for the Fed's total liabilities may be in the ballpark of 16.5 per cent of GDP. Chinese data released over the weekend was slightly weaker though hopes for more policy support are likely to cushion any blows. New bank loans in China fell a bit more than expected in February from a record the previous month, while money supply growth also missed the forecast. Following the data, China's central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs. In the currency market, the euro stood at $1.12345, keeping some distance from Thursday's $1.11765 hit after the European Central Bank's surprisingly dovish stance. It was its lowest since late June 2017. The dollar was softer at 111.12 yen, having peaked at a 2-1/2-month high of 112.135 last Tuesday. The British pound was wobbly at $1.2986, having fallen to a three-week low of $1.2945 earlier on Monday on nervousness ahead of a crucial week in the UK’s troubled political debate over EU membership, with parliament expected to reject Prime Minister Theresa May's deal in a vote on Tuesday. If that happens, lawmakers will vote the next day on whether to leave without a deal on March 29. If they reject that, then on Thursday they are due to vote on a "limited" delay. Oil prices steadied after dipping on Friday on concerns about a slower US economic growth and surging US oil supply. US West Texas Intermediate (WTI) crude futures rose 0.2 per cent to $56.18 per barrel.

Asian shares decline as US jobs data clouds global outlook

US President Donald Trump threatened on Tuesday to eliminate subsidies for General Motors Co in retaliation for the <a href="http://www.wionews.com/business-economy/general-motors-says-cutting-15-of-workforce-to-save-6-billion-179614">automaker cutting US jobs and plants</a>, and the automaker also took fire from Canadian political and labour leaders for cutbacks there.

"The US saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including ... for electric cars," Trump said on Twitter.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico &amp; China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all <a href="https://twitter.com/GM?ref_src=twsrc%5Etfw">@GM</a> subsidies, including....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1067494680416407552?ref_src=twsrc%5Etfw">November 27, 2018</a></blockquote>
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....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1067494682249318402?ref_src=twsrc%5Etfw">November 27, 2018</a></blockquote>
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Trump`s harsh words rattled investors, who bid down GM shares by 2.6 per cent on Tuesday after sending them up on Monday in response to the automaker`s cost-cutting. Separately, Canadian Prime Minister Justin Trudeau called Trump to discuss GM`s actions, according to union leaders.

The wrath of the leaders of the United States and Canada dramatized the challenges GM and its Detroit rivals will face as they restructure to cope with the most dramatic technology and market shifts in decades.

Trump has made boosting auto jobs a key priority during his almost two years in office and has often attacked automakers on Twitter for not doing enough to boost US employment. The president on Tuesday escalated his attacks on GM`s plan to cut 15,000 jobs and mothball five North American factories, including four in the United States. Among the four US factories on the block is a car factory in northeast Ohio, a state critical to victory in the 2020 presidential campaign.

GM electric vehicles are eligible for a $7,500 tax credit under federal law, but it is not clear how the administration could restrict those credits or if Trump had other subsidies in mind.&nbsp;

GM said in a statement following Trump`s comments that it was "committed to maintaining a strong manufacturing presence" in the United States after investing $22 billion in operations here since 2009 and will add new jobs in electrification and autonomous vehicles.

The cuts will "position the company for long-term success and maintain and grow American jobs," GM said, adding that many workers at impacted plants will be able to move to other GM factories.

GM Chief Executive Mary Barra spoke to Trump over the weekend to discuss the cuts and was at the White House on Monday to meet with economic adviser Larry Kudlow.

Kudlow told reporters Tuesday that the administration had helped GM with fuel efficiency standards and other regulations.

"We’ve done this to help you and I think his disappointment is, it seems like that they kind of turned his back on him," Kudlow said.

WORKERS DISCUSSING "MASS ACTIONS"

Trump also criticized GM for not closing facilities in Mexico or China.

&nbsp;"General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!" Trump wrote on Twitter.

GM currently builds just one vehicle in China that it exports to the United States - the Buick Envision and has sold about 22,000 through September. GM sold nearly 2.7 million vehicles in China through September, nearly all of them built in China for the market.&nbsp;

White House spokesman Sarah Sanders told reporters on Tuesday that the president is looking at options.&nbsp;

"The president wants to see American companies build cars here in America not build them overseas and he is hopeful that GM will continue to do that here," she said.

GM has been lobbying Congress, along with Tesla Inc, to lift the current cap on electric vehicles eligible for tax credits, but any action by Congress before 2019 is a long-shot, congressional aides said.

Under current law, once a manufacturer sells 200,000 electric vehicles, the tax credit phases out starting in the following quarter. GM has said it expects to hit the 200,000-vehicle threshold by the end of the year and Tesla hit the cap in July.&nbsp;

In Canada, workers returned to the assembly line at General Motors` Oshawa, Ontario, plant on Tuesday, as their union president met with Prime Minister Trudeau and said he was ready for "mass actions" at GM facilities.&nbsp;

GM said on Monday that the Oshawa plant would close in December 2019.&nbsp;

"We`re dealing with a corporation that doesn`t have any respect for Canadian and American workers, and I think we should treat them in the same vein," said Jerry Dias, national president of Unifor, which represents GM workers in Canada.

Dias said he would meet with the United Auto Workers on Wednesday and discuss the possibility of "mass actions" in GM plants across the two countries.

Dias floated the idea of a tariff on GM vehicles built in Mexico, saying a 40 per cent tariff would get the company`s attention.&nbsp;

US President Donald Trump threatened on Tuesday to eliminate subsidies for General Motors Co in retaliation for the automaker cutting US jobs and plants, and the automaker also took fire from Canadian political and labour leaders for cutbacks there.

US President Donald Trump threatened on Tuesday to eliminate subsidies for General Motors Co in retaliation for the automaker cutting US jobs and plants, and the automaker also took fire from Canadian political and labour leaders for cutbacks there. "The US saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including ... for electric cars," Trump said on Twitter. Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including.... — Donald J. Trump (@realDonaldTrump) November 27, 2018 × ....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers! — Donald J. Trump (@realDonaldTrump) November 27, 2018 × Trump`s harsh words rattled investors, who bid down GM shares by 2.6 per cent on Tuesday after sending them up on Monday in response to the automaker`s cost-cutting. Separately, Canadian Prime Minister Justin Trudeau called Trump to discuss GM`s actions, according to union leaders. The wrath of the leaders of the United States and Canada dramatized the challenges GM and its Detroit rivals will face as they restructure to cope with the most dramatic technology and market shifts in decades. Trump has made boosting auto jobs a key priority during his almost two years in office and has often attacked automakers on Twitter for not doing enough to boost US employment. The president on Tuesday escalated his attacks on GM`s plan to cut 15,000 jobs and mothball five North American factories, including four in the United States. Among the four US factories on the block is a car factory in northeast Ohio, a state critical to victory in the 2020 presidential campaign. GM electric vehicles are eligible for a $7,500 tax credit under federal law, but it is not clear how the administration could restrict those credits or if Trump had other subsidies in mind. GM said in a statement following Trump`s comments that it was "committed to maintaining a strong manufacturing presence" in the United States after investing $22 billion in operations here since 2009 and will add new jobs in electrification and autonomous vehicles. The cuts will "position the company for long-term success and maintain and grow American jobs," GM said, adding that many workers at impacted plants will be able to move to other GM factories. GM Chief Executive Mary Barra spoke to Trump over the weekend to discuss the cuts and was at the White House on Monday to meet with economic adviser Larry Kudlow. Kudlow told reporters Tuesday that the administration had helped GM with fuel efficiency standards and other regulations. "We’ve done this to help you and I think his disappointment is, it seems like that they kind of turned his back on him," Kudlow said. WORKERS DISCUSSING "MASS ACTIONS" Trump also criticized GM for not closing facilities in Mexico or China. "General Motors made a big China bet years ago when they built plants there (and in Mexico) - don’t think that bet is going to pay off. I am here to protect America’s Workers!" Trump wrote on Twitter. GM currently builds just one vehicle in China that it exports to the United States - the Buick Envision and has sold about 22,000 through September. GM sold nearly 2.7 million vehicles in China through September, nearly all of them built in China for the market. White House spokesman Sarah Sanders told reporters on Tuesday that the president is looking at options. "The president wants to see American companies build cars here in America not build them overseas and he is hopeful that GM will continue to do that here," she said. GM has been lobbying Congress, along with Tesla Inc, to lift the current cap on electric vehicles eligible for tax credits, but any action by Congress before 2019 is a long-shot, congressional aides said. Under current law, once a manufacturer sells 200,000 electric vehicles, the tax credit phases out starting in the following quarter. GM has said it expects to hit the 200,000-vehicle threshold by the end of the year and Tesla hit the cap in July. In Canada, workers returned to the assembly line at General Motors` Oshawa, Ontario, plant on Tuesday, as their union president met with Prime Minister Trudeau and said he was ready for "mass actions" at GM facilities. GM said on Monday that the Oshawa plant would close in December 2019. "We`re dealing with a corporation that doesn`t have any respect for Canadian and American workers, and I think we should treat them in the same vein," said Jerry Dias, national president of Unifor, which represents GM workers in Canada. Dias said he would meet with the United Auto Workers on Wednesday and discuss the possibility of "mass actions" in GM plants across the two countries. Dias floated the idea of a tariff on GM vehicles built in Mexico, saying a 40 per cent tariff would get the company`s attention.

After US job cuts, Trump threatens to stop all GM subsidies

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