Trump Economy Crumbles: US Loses 23,000 Jobs Amid Rising Inflation

The US economy lost 23,000 jobs in July, marking one of the weakest monthly performances in years. Heather Long, chief economist at Navy Federal Credit Union, described this as a 'job market on life support', highlighting several issues for American workers.

Long pointed out that inflation from Trump's Iran war is now wiping out wage gains. The latest consumer price data showed inflation running at 3.5 per cent over the past year, compared to wage growth of 3.2 per cent. This means the average pay rise has effectively been erased by higher living costs.

The July jobs report confirmed that the US economy shed 23,000 jobs in July, with non-farm payrolls declining instead of rising as expected. The unemployment rate edged down to 4.1 per cent, but this was largely because more people left the labour force rather than finding new work.

Long warned that new data due this week is unlikely to change the picture dramatically, and that inflation will 'totally wipe out wage gains' for many Americans. The Federal Reserve has been left in a bind over interest rates as a result of the Iran-linked inflation shock and Trump's broader economic choices.