US jobs growth falls short

The US economy added 114,000 jobs in July, down from economists estimates of 185,000, and unemployment rates rose for the fourth consecutive month to 4.3%—the highest since October 2021—the Labor Department reported Friday.

Increasing jobless rates are sparking fears of a slowing jobs market, which risks the economy into recession.

While the economic policies of the Federal Reserve were focused on lowering inflation for the past two years, recent developments, like high unemployment rates, have shifted the concern to the labor market.

Despite concerns, the labor market isn’t weak. Job openings outnumber unemployed individuals, and layoffs are limited, reports the Wall Street Journal.

A potential job market slowdown could affect the upcoming presidential race between Donald Trump and Kamala Harris. Economic downturns often hurt incumbents, and a weakening economy could challenge Harris’s bid for the presidency.