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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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World

Contact with two hostages ‘lost’ during Israeli operations in Gaza, Hamas’s armed group says

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Contact with two hostages 'lost' during Israeli operations in Gaza, Hamas's armed group says

Hamas’s armed group has claimed it has lost contact with two hostages as a result of Israel’s operations in Gaza – after it called on air deployments to be stopped for 24 hours.

In a statement, Hamas’s armed al-Qassam Brigades said it had demanded that Israel halt air sorties for 24 hours, starting at 6pm, in part of Gaza City, to remove the hostages from danger.

It comes a day before Israeli Prime Minister Benjamin Netanyahu is due to meet US President Donald Trump and as the number of those killed in Gaza surpasses the 66,000 mark, according to the enclave’s Hamas-run health ministry.

Its figure does not differentiate between civilians and fighters.

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Volunteer nurse’s video diary of Gaza horrors

A total of 48 hostages are still being held captive by Hamas, the militant group which rules Gaza, with about 20 believed by Israel to still be alive. A total of 251 hostages were taken on 7 October 2023, when Hamas launched an unprecedented attack on Israel which killed 1,200 people.

Situation on the ground

In Gaza, a war-torn enclave where famine has been declared in some areas and where Israel has been accused of committing acts of genocide – which it has repeatedly denied – the almost two-year war raged on.

On Sunday, the number of those killed rose to at least 21 as five people were killed in an airstrike in the Al Naser area, local health authorities said, while medics reported 16 more deaths in strikes on houses in central Gaza.

The Civil Emergency Service in Gaza said late on Saturday that Israel had denied 73 requests, sent via international
organisations, to rescue injured Palestinians in Gaza City.

Israeli authorities had no immediate comment. The military earlier said forces were expanding operations in the city and
that five militants firing an anti-tank missile towards Israeli troops had been killed by the Israeli air force.

Read more:
Volunteer nurse’s video diary of Gaza horrors
Blair being lined up to lead temporary Gaza administration – reports

‘We will get it done’

In Monday’s White House meeting, President Trump is expected to share a new 21-point proposal for an immediate ceasefire.

His proposal would include the release of all hostages within 48 hours and a gradual withdrawal of Israeli forces from the Palestinian enclave, according to three Arab officials briefed on the plan, the PA news agency reports.

A Hamas official said the group was briefed on the plan but has yet to receive an official offer from Egyptian and Qatari mediators. Hamas has said it is ready to “study any proposals positively and responsibly”.

Mr Trump, who has been one of Israel’s greatest allies, said on Sunday there is “a real chance for greatness in the Middle East”.

It is unclear, however, what Mr Trump was specifically referring to.

He said in a Truth Social post: “We have a real chance for Greatness in the Middle East. All are on board for something special, first time ever. We will get it done.”

On Friday – the same day a video of diplomats walking out on Mr Netanyahu during his address to the United Nations went viral – Mr Trump said he believed the US had reached a deal on easing fighting in Gaza, saying it “will get the hostages back” and “end the war”.

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Diplomats walk out as Israeli PM speaks at UN

“I think we maybe have a deal on Gaza, very close to a deal on Gaza,” the US president told reporters on the White House lawn as he was leaving to attend the Ryder Cup.

Mr Trump has repeatedly claimed an agreement to end the war was imminent, only for nothing to materialise.

Weeks ago, he said: “I think we’re going to have a deal on Gaza very soon.”

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Politics

French officials pressured Telegram to censor Moldova election posts: Durov

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French officials pressured Telegram to censor Moldova election posts: Durov

French officials pressured Telegram to censor Moldova election posts: Durov

Telegram co-founder Pavel Durov said that French intelligence pressured Telegram into censoring political content, which he refused to do.

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More victims expected after Mormon church in Michigan set on fire during mass shooting

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More victims expected after Mormon church in Michigan set on fire during mass shooting

A person has been killed and several others injured after a mass shooting and fire at a Mormon church in Michigan, police have said.

Authorities said at a news conference that the suspect was shot dead by police officers, and that nine others were injured.

Two of those were said to be in critical condition, Grand Blanc Township Chief William Renye told reporters.

Flames and smoke rising from the Church of Jesus Christ of Latter-day Saints in Grand Blanc. Pic: Julie J, @Malkowski6April / AP
Image:
Flames and smoke rising from the Church of Jesus Christ of Latter-day Saints in Grand Blanc. Pic: Julie J, @Malkowski6April / AP

He added that the suspect was a 40-year-old man from Burton, who drove his vehicle into the church and began firing rounds at the hundreds of people attending Sunday service.

The suspect used an assault rifle and deliberately started the blaze, Chief Renye said, before adding that officers believe they will find additional victims in the fire.

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Pics: AP
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Pics: AP

The incident took place at around 11am local time at the Church of Jesus Christ of Latter-day Saints in Grand Blanc, about 50 miles north of Detroit.

In a statement on Sunday morning, Grand Blanc Township Police Department added that the church was “actively on fire” and urged the public to avoid the area.

Michigan governor Gretchen Whitmer said in a statement that “my heart is breaking for the Grand Blanc community” after the shooting.

She added: “Violence anywhere, especially in a place of worship, is unacceptable. I am grateful to the first responders who took action quickly.”

Sheriff: ‘Entire church is on fire’

Genesee County sheriff Christopher Swanson said at around 12.20pm (5.20pm in the UK) that the “entire church is on fire”, and confirmed that people who were at the church have been evacuated.

Around 20 minutes later, the police department said the fire had been contained.

The incident took place at the Church of Jesus Christ of Latter-day Saints in Grand Blanc
Image:
The incident took place at the Church of Jesus Christ of Latter-day Saints in Grand Blanc

US attorney general Pam Bondi also confirmed the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives are responding to the incident.

US President Donald Trump said on Truth Social that “the suspect is dead, but there is still a lot to learn”, before saying the shooting “appears to be yet another targeted attack on Christians in the United States of America”.

He added: “PRAY for the victims, and their families. THIS EPIDEMIC OF VIOLENCE IN OUR COUNTRY MUST END, IMMEDIATELY!”

In the wake of the shooting and fire, the New York Police Department said it would deploy officers to religious institutions across the city “out of an abundance of caution”.

The incident occurred the morning after Russell M Nelson, the oldest-ever president of The Church of Jesus Christ of Latter-day Saints, died at 101.

Shootings reported in North Carolina, New Orleans, Texas

Meanwhile, authorities responded to a mass shooting at a coastal town in North Carolina late on Saturday, where three people were killed.

At least eight others were injured in that incident, where someone opened fire from a boat into a crowd at a bar.

Another shooting took place at a south Texas casino early on Sunday, with seven people shot and two killed.

A woman was also killed, and three others were injured in Bourbon Street, New Orleans, early on Sunday after a shooting.

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