The U.S. labor market is under renewed scrutiny after the Labor Department revised down job gains by 258,000 for May and June, revealing much weaker employment growth than previously reported. May added only 19,000 jobs and June just 14,000—far below initial estimates. Combined with July's 73,000 jobs, the three-month total is a sluggish 106,000, signaling stagnation. Economists were shocked by the scale of the revisions, especially following strong inflation and GDP figures. Most sectors saw flat or negative job growth, except healthcare. President Trump criticized Fed Chair Jerome Powell, blaming high interest rates for stifling hiring. The Fed now faces a tough choice between cutting rates to stimulate jobs or holding steady to avoid further inflation. Experts warn that ongoing tariff policies, immigration restrictions, and unclear economic direction are paralyzing employers and exposing structural weaknesses in the economy.
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