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US employers added 187,000 jobs in July, the lowest number since COVID peaked in 2020, the Labor Department said Friday.

The latest figures shown in the Bureau of Labor Statistics’ July report, released Friday, are a key indicator that the red-hot labor market is officially cooling after nearly 18 months of interest rate hikes — part of the Federal Reserve’s aggressive tightening cycle to bring inflation back down to its pre-pandemic level of 2%.

Job openings last month mark a slight decrease from the 209,000 jobs added to the US economy in June, and a sharper drop from the robust 339,000 jobs that were gained in May.

The figures mark the slowest increase since December 2020, though the US is currently enjoying a 30-month streak of monthly job gains.

The government agency’s report also showed that unemployment was little changed month-over-month, to 3.5% from 3.6%.

Employment in healthcare added 63,000 jobs last month, increasing the most.

Jobs in construction, financial activities and wholesale trade also trended positively, the report showed.

Fed officials have warned that strong hiring can often fuel inflation if companies feel compelled to raise pay to attract and keep workers.

Thus, a slowdown in job growth and pay raises could help the Fed reach its 2% inflation target.

The Fed last week hiked interest rates to a 22-year high — to a range between 5.25% and 5.5% — and Powell suggested that further lifts could be imminent if officials though it were necessary to combat stubbornly-high inflation.

Friday’s report came in under what economists had expected.

They had forecast 200,000 new jobs in June with the unemployment rate holding steady at 3.6%, according to The Wall Street Journal.

Experts have long been forecasting that the jobs market would cool by the fourth quarter of the year, though bankers are shrugging off recession concerns as US consumers have reportedly been keeping up their loan payments.

JPMorgan chief Jamie Dimon said in an earnings conference call last month: “Even if we go into recession, theyre going with rather good condition, with low borrowings and good house price value still.”

Bank of America CFO Alastair Borthwick also said that “the consumers actually in pretty good shape,” citing elevated deposits and strong asset quality.

Powell has also said that Fed staff is no longer forecasting a recession.

We do have a shot for inflation to return to target without high levels of job losses, the Fed Chairman said.

However, when ratings agency Fitch shockingly downgraded the US’ top-tier sovereign credit rating from AAA to AA+ earlier this week, it pointed to a looming recession by the end of the year as reason for doing so.

The agency noted that it expects the US economy to slip into a mild recession from the fourth quarter of this year into the first quarter of 2024.

Tighter credit conditions, weakening business investment and a slowdown in consumption will push the US economy into a mild recession, Fitch said in the statement.

Fitch’s decision was bashed among top economists, with the likes of Former Treasury Secretary Larry Summers and CUNY economics professor Paul Krugman both calling the move “bizarre.”

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Elon Musk steps up attacks on Trump once again – as the president fights back

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Elon Musk steps up attacks on Trump once again - as the president fights back

Elon Musk has stepped up his attacks on Donald Trump’s sweeping tax and spending bill – weeks after a spectacular fallout between the world’s richest man and the US president.

Following weeks of relative silence after clashing with Mr Trump over his “big beautiful bill”, the billionaire vowed to unseat politicians who support it.

In a post on X, Musk said those who had campaigned on cutting spending but then backed the bill “should hang their heads in shame”.

He added: “And they will lose their primary next year if it is the last thing I do on this Earth.”

Musk also threatened to put their faces on a poster which said “liar” and “voted to increase America’s debt” by $5trn (£3.6trn).

The posts attracted a swift reply from Mr Trump, who claimed the billionaire “may get more subsidy than any human being in history” for his electric car business.

“Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” he wrote on Truth Social.

“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”

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Elon’s dad on the Musk-Trump bust-up

Musk spent at least $250m (£182m) supporting Mr Trump in his presidential campaign and then led the newly formed Department of Government Efficiency (DOGE), which sacked about 120,000 federal employees.

He has argued the legislation would greatly increase the US national debt and wipe out the savings he claimed he achieved through DOGE.

As the Senate discussed the package, Musk called it “utterly insane and destructive”.

The Tesla and SpaceX CEO said the bill’s massive spending indicated “we live in a one-party country – the PORKY PIG PARTY!!”

“Time for a new political party that actually cares about the people,” he wrote.

Read more from Sky News:
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Musk previously said some of his social media posts during his dramatic fallout with Mr Trump “went too far”.

He had shared a series of posts on X, including one that described Mr Trump’s tax and spending bill as a “disgusting abomination”.

He also claimed, in a since-deleted post, that the president appeared in files relating to the disgraced paedophile financier Jeffrey Epstein.

But Musk later wrote: “I regret some of my posts about President @realDonaldTrump last week. They went too far.”

In response, the president told the New York Post: “I thought it was very nice that he did that.”

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What’s in Trump’s ‘Big Beautiful Bill’?

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What's in Trump's 'Big Beautiful Bill'?

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Martha Kelner and Mark Stone break down what’s in Donald Trump’s huge tax and spending bill. He’s trying to sign it into law by the end of the week.

They also discuss the State Department’s decision to revoke US visas for British band Bob Vylan after their Glastonbury performance.

If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.

You can also watch all episodes on our YouTube channel.

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Major German bank to offer crypto trading by 2026 amid bank ‘FOMO’

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Major German bank to offer crypto trading by 2026 amid bank ‘FOMO’

Major German bank to offer crypto trading by 2026 amid bank ‘FOMO’

Sparkassen-Finanzgruppe execs once ruled out adopting crypto over concerns of volatility and risk, and the banking giant also blocked customer crypto transactions back in 2015.

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