Live Updates > Live Update Details
2025-08-01 20:51:59
July's surprising non-farm payroll report reveals a "two-sided narrative" about the US economy's resilience. According to the Wall Street Journal, the US added 73,000 jobs in July, falling short of the 100,000 economists expected. The unemployment rate edged up from 4.1% to 4.2%. The report comes as economists and policymakers try to sort out which of two competing economic narratives is closer to the truth. Optimists believe the economy is remarkably resilient: while tariff threats have filtered through to some commodity prices, they haven't yet triggered significant inflation; and consumers, who were hesitant at the beginning of the year, are regaining confidence. Pessimists, however, point to widening rifts: Companies like Procter & Gamble and Chipotle report increased consumer price sensitivity, with younger consumers, in particular, cutting back on discretionary spending, and economic growth increasingly reliant on the wealthiest. Guy Berger, a senior fellow at the Burning Glass Institute, a labor market think tank, believes the economy remains stable: "Almost all major indicators have been quite stable since last fall." The policy environment has become the biggest variable. "Given tariffs, immigration restrictions, and the new tax bill," Berger noted, "I don't think this stability will last."
