US Unemployment Rises to 4.2% - Trump Fires Head of Labor Statistics Agency

Unemployment in the United States rose to 4.2% in July, according to the Labor Department, marking the lowest job creation since the pandemic. The economy added only 73,000 new jobs, significantly below analyst estimates.

May and June hiring figures were revised down by a total of 258,000 jobs. Employment is concentrated in health and social services, with losses recorded in the public sector.

Donald Trump fired Erica MaEntee, Commissioner of Labor Statistics, accusing her of manipulating statistics. Trump insisted the economy is strong while criticizing the Federal Reserve and Jerome Powell.

Economist Heather Long noted the labor market is deteriorating, and the Fed may need to cut rates in September. New job creation in the last three months averages 35,000, indicating a slowdown.