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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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Canucks, Boeser agree on new seven-year deal

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Canucks, Boeser agree on new seven-year deal

The Vancouver Canucks have come to terms with forward Brock Boeser on a new seven-year contract, carrying a $7.25 million AAV.

Canucks GM Patrik Allvin announced the deal on Tuesday during the first hour of NHL free agency. Boeser, 28, was an unrestricted free agent on a previously expiring contract.

Drafted by Vancouver 23rd overall in the 2015 NHL draft, Boeser has collected 204 goals and 434 points in 554 games with the Canucks to date. A top-six scoring threat, Boeser has elite playmaking skills and the potential to produce big numbers offensively. He had his best year offensively in 2023-24, producing 40 goals and 73 points in 81 games.

Boeser didn’t hit those marks again last season — settling for 25 goals and 50 points in 75 games — but was still second amongst teammates in output. He also plays a prominent role on Vancouver’s power play and when he can generate opportunities at 5-on-5, he is a true difference-maker up front for the Canucks.

The extension is a happy ending for Vancouver and Boeser. When the regular season ended, Boeser admitted “it’s tough to say” whether he’d be back with the Canucks. Boeser reportedly turned down a previous five-year extension offer with the club and Allvin subsequently looked into deals for him at the March trade deadline, with no takers. Boeser looked — and sounded — poised to explore his options on the open market.

Ultimately, Boeser decided to stay put by committing the best years of his career to the Canucks.

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Jake Allen agrees to 5-year deal with the Devils

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Jake Allen agrees to 5-year deal with the Devils

Jake Allen, one of the top goaltenders available entering free agency, is not heading to the market after agreeing to a five-year deal with the New Jersey Devils, sources told ESPN on Tuesday.

Allen’s average annual value on the deal is $1.8 million, sources told ESPN. That AAV allows the Devils to run back the same goaltending tandem for next season.

Jacob Markstrom has one year remaining on his contract for $4.125 million. Nico Daws is also under contract for next season, before becoming a restricted free agent next summer.

Several teams were interested in the 34-year-old veteran, whom sources said could have made more money on the open market. However, the deal with the Devils gives Allen long-term security. Allen has played for the Blues, Canadiens and Devils over his 12-year-career. He has started in 436 career games.

Last season, Allen started 29 games for the Devils, going 13-16-1 with a .906 save percentage, 2.66 GAA and four shutouts.

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Capitals sign Fehervary to 7-year, $42M extension

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Capitals sign Fehervary to 7-year, M extension

Washington Capitals defenseman Martin Fehervary signed a seven-year extension through the 2032-33 season that is worth $6 million annually, the team announced Tuesday.

Fehervary, who had one year of team control remaining, will enter the final season of a three-year bridge deal that will see him make $2.675 million before his new contract begins at the start of the 2026-27 season.

He finished the season with five goals and a career-high 25 points while logging 19 minutes. Fehervary also played a crucial role in the Capitals’ penalty kill by finishing with 245 short-handed minutes for a penalty kill that was fifth in the NHL with an 82% success rate.

Securing the 25-year-old Fehervary to a long-term deal means the Capitals now have seven players who have more than three years remaining on their current contracts.

It also means the Capitals front office has one less decision to make ahead of what is expected to be an active offseason in 2026 that will see the club have what PuckPedia projects to be $39.25 million in cap space.

That’s also the same offseason in which captain and NHL all-time leading goal scorer Alex Ovechkin‘s contract will come off their books along with that of defenseman John Carlson.

But until then, the Capitals have their entire top-six defensive unit under contract as they seek to improve upon a 2024-25 season that saw them finish atop the Metropolitan Division with 111 points before they lost in the Eastern Conference semifinal to the Carolina Hurricanes in five games.

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