US Economy Loses 23,000 Jobs in July Amid Soaring Iran War Inflation

The US economy has lost 23,000 jobs in July, according to the latest employment report released by the Trump administration. Economist Heather Long described this as 'a job market on life support' and warned that ordinary workers are being pushed to the brink. The unemployment rate edged down to 4.1%, but this was largely due to more people leaving the labor force rather than finding new work.

Long pointed out that inflation is running at 3.5% over the past year, compared with wage growth of 3.2%. This means that the average pay rise has effectively been erased by higher living costs. She warned that new data due this week is unlikely to change this picture dramatically, and that inflation will 'totally wipe out wage gains' for many Americans.

Long believes that Trump's confrontation with Iran has become a key driver of the current squeeze on workers. The war has led to higher energy and transport costs, which are feeding into everything from supermarket shelves to utility bills. This has resulted in a weird mix of high inflation, weak wage growth, and fading job creation.

Analysts have described the July jobs report as 'soft' and 'concerning', with some suggesting that the Iran-linked inflation shock has left the Federal Reserve stuck in a bind over interest rates. Long said that the labor market has shifted from a 'slow hire, slow fire' mode into something more fragile, with employers hesitating to take on staff and jobseekers struggling to secure offers.