As President Trump's global tariffs took effect on Friday, the most recent jobs report numbers also showed that employers added 73,000 jobs in July.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

A recent CBS News discussion explored the impact of tariffs introduced under the Trump administration on US employment figures. The latest data showed 73,000 jobs added, which is lower than the previous three-month average of 111,000, indicating a slowdown in job growth. Despite this, the unemployment rate remains at 4.2%, considered within a healthy range, with no signs of mass layoffs.

The report noted that job growth is concentrated in sectors like healthcare and social services, leading to a skills mismatch for many workers. The Federal Reserve has kept interest rates steady, citing uncertainty over tariffs and inflation. Market volatility has increased due to shifting tariff policies and weaker job reports. Experts suggest that unless job growth continues to slow and consumer spending drops, the risk of recession remains limited.

How Trump's tariffs impact unemployment numbers

More on the tariffs, employment data, and how it's all tied together. We are joined now by CBS News Moneywatch correspondent Kelly O'Grady. Kelly, in the economy, we added jobs in July, but this still is seen as a miss in the report. What stood out to you in this? So just to put this into context, I mean, 73,000 added in July, that's not a good number. It is paling in comparison to the first three-month average where we added 111,000, if you look at that, of how it shakes out. But I don't want anyone to panic over their coffee right now because we didn't see mass firings. The unemployment rate still stood at 4.2%. It ticked up a little bit, but that's still within a healthy range. The two things that really stood out to me, though, is this confirms what we have been hearing and just the feeling that there has been a labor market slowdown. People are taking longer to find a job, less people are quitting because they feel, well, I'm not gonna be able to go out and find something else. And so it really showed up in the data. And then where you did see the job growth, which was healthcare and social services, there's a skills mismatch. If I get fired, I'm not gonna be able to go get a job in healthcare, right? So where the job openings aren't necessarily matching up with where people are looking. The president's been steadily asking for lower interest rates. Do you see that happening at any point? This is very possible. We had a Federal Reserve interest rate meeting this week. They didn't change rates. And the whole idea was, well, we don't know what's gonna happen with the tariffs and we have to make sure that we keep inflation in check while also keep the labor market growing. But you mentioned those job revisions. And so what that tells you is this July thing, it's not a one month thing. This has been happening month after month at this point. And so when I think about what the Federal Reserve is gonna do, I go back to September, 2024. That was when they did the half point rate cut. It was the first rate cut after all of that inflation. It came after three months of low job growth. Now we have the wild card of tariffs and how that's going to impact inflation. And we've got an inflation and a jobs report before they cut again. So there's gonna be a lot more data. You mentioned the tariffs. And I said to you while we were watching, this has just been going on over here and it's the same thing. Prices could go up and the market may go down. What do you expect to see right now with where we are in regards to tariffs when it comes to the market and prices for us? Yes, and I'll just correct myself because I said before they cut again, before they make a decision again. When it comes to the market volatility that we just saw, it was because there was uncertainty. I think investors had really gotten comfortable with, okay, here are the tariff rates. This is when they're gonna go into effect. And then things shifted on Thursday night. And then you had this weaker than expected jobs report. So if we see more uncertainty, more bad data, you're gonna see more market volatility. In terms of prices, it takes a few months for that to flow through to me and you. And we have those price increases, or sorry, tariffs coming in a couple of days. It's also about who is going to absorb it. Do businesses just say, hey, I'm gonna take the hit? So we still don't know. Right, are you and I gonna get it? Or are companies that are selling goods into America going to lower their import prices? So a lot of different dynamics happening. You know, a lot during the last administration, we heard the R word. We haven't heard so much about the possibility of recession. Will these economic trade wins signal that? So there was a lot of discussion about that in April when the reciprocal tariffs that the White House was calling it were put in place and then they were walked back. You aren't going to see that become a real possibility in the discussion unless we see that job growth continue to slow over the next few months and we see consumer spending really slow down because economic growth, two thirds of it in this country is driven by consumer spending. And that's where the recession comes in. Kelly O'Grady, we so appreciate you wrapping it up for us. Thank you.

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How Trump's tariffs impact unemployment numbers

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Global Tariffs