What a weak August jobs report tells us about the state of the economy

This story appeared in The Logoff, a every day publication that helps you keep knowledgeable concerning the Trump administration with out letting political information take over your life. Subscribe right here.Welcome to The Logoff: The Bureau of Labor Statistics launched its month-to-month jobs report this morning, and the numbers aren’t trying good for the US economic system, or President Donald Trump’s tariffs scheme.What occurred within the US economic system final month? The US added simply 22,000 jobs in August, in accordance with the BLS, whereas unemployment reached 4.3 p.c — its highest charge in years, although solely a small enhance from the month earlier than.Not solely is 22,000 jobs far fewer than the 75,000 that had been predicted, however new revisions to information from earlier months are making the financial image look even worse: Somewhat than including jobs in June, the BLS mentioned Friday, the US misplaced 13,000 jobs.Why does the roles report matter? The roles report is a carefully watched indicator of the broader well being of the US economic system, and Friday’s flagging numbers are the most recent signal that every one shouldn’t be effectively, particularly as Trump’s tariffs, which took impact in early August, begin to have a larger impression.Friday’s report is especially noteworthy given how Trump reacted to final month’s report, which additionally made substantial downward revisions to jobs numbers for Might and June. Trump attacked the report’s accuracy and fired the director of the BLS, Erika McEntarfer. To interchange her, he nominated E.J. Antoni, a deeply underqualified right-wing economist (who could have issue getting confirmed by the Senate).What does this imply going ahead? That is the second consecutive jobs report that has delivered dangerous information; a clearer image of an economic system in bother, with no clear respite on the horizon, is beginning to emerge. New inflation information subsequent week could possibly be but extra dangerous information if tariffs drive costs greater, as anticipated.The one brilliant spot for Trump is that he’s now extra more likely to get the speed minimize he’s been trying — and agitating — for when the Federal Reserve meets later this month, because the central financial institution responds to a slumping economic system.And with that, it’s time to log out…I’m trying ahead to the brand new season of The Nice British Bake Off, which returns at present within the US. This New Yorker story, from former contestant Ruby Tandoh, is a pleasant have a look at what it’s prefer to be on the present, from the applying course of to the tent itself. You possibly can learn it right here, however honest warning: You would possibly depart the piece craving a candy deal with. Have an important weekend and we’ll see you again right here on Monday!