{"text":[[{"start":0,"text":"The US economy shed 23,000 jobs in July in the latest sign of a cooling labour market, prompting traders to scale back bets on interest rate rises by the Federal Reserve."}],[{"start":21.8,"text":"Friday’s figure from the Bureau of Labor Statistics was down from the downwardly revised 20,000 jobs added in June and well below the bumper growth seen earlier in the year. Economists polled by Bloomberg had forecast 80,000 job gains."}],[{"start":38.72,"text":"Hiring numbers for May and June were revised down by a combined 103,000. While employment continued to grow in the healthcare sector, jobs were lost in education, retail and financial services."}],[{"start":52.04,"text":"The unemployment rate fell from 4.2 per cent in June to 4.1 per cent, the lowest level since June last year, as a result of people leaving the workforce. Labour force participation fell to its lowest level since 2021."}],[{"start":66.28,"text":"“The softness in this report is something that is genuine,” said Bruce Kasman, chief economist at JPMorgan."}],[{"start":73.84,"text":"“Even if we discount some of this number from a seasonal point of view, the breadth of slowing across sectors, the disappointment now on a three-month runway basis . . . all points to a softer job growth picture than we certainly thought we would be having at this point.”"}],[{"start":88.16,"text":"The payroll data comes as markets fret over the US central bank’s ability to keep inflation under control, ratcheting up pressure on policymakers to increase rates."}],[{"start":98,"text":"But Treasury yields and the dollar fell on Friday as the weak jobs numbers prompted traders to scale back bets on a September rate increase from the Fed. The two-year yield, which moves with interest rate expectations, fell by 0.05 percentage points to 4.19 per cent. The S&P 500 rose 0.6 per cent to close at a record high."}],[{"start":120.94,"text":"Markets are now pricing in a roughly 42 per cent chance of a quarter-point rate rise next month, down from nearly 60 per cent before the jobs data."}],[{"start":null,"text":"
"}],[{"start":129.08,"text":"Eric Winograd, director of developed market economics at AllianceBernstein, said that while the data did not take Fed rate rises off the table, it “certainly weakens the case” for them."}],[{"start":138.88,"text":"But analysts said that July inflation data due out next week would be a bigger influence on policymakers’ thinking than the employment numbers."}],[{"start":147.52,"text":"“The incoming inflation data, if it comes out hot, would put the pressure right back” on the Fed, said Jonathan Cohn, head of US rates desk strategy at Nomura. “Inflation is the more important side of the dual mandate right now.”"}],[{"start":161.986,"text":"Long-term US borrowing costs jumped last week after Fed chair Kevin Warsh offered scant guidance on how the central bank would contain the price pressures stemming from the war in the Middle East."}],[{"start":172.24,"text":"People close to Warsh have indicated he will stick to his stripped-back communications style when the Fed meets next month despite the Treasury sell-off."}],[{"start":180.049,"text":"US job growth in the initial months of 2026 appeared to have bounced back after a lacklustre 2025, but hiring has deteriorated as the year has progressed. Analysts have pointed to a “low-hire, low-fire” stasis in the labour market as movement between employers remains depressed."}],[{"start":198.58,"text":"The July job losses were led by public sector education roles, which dropped by 50,000. Financial activities roles fell by 14,000, while the retail trade shed 19,000 posts."}],[{"start":210.76,"text":"Omair Sharif at consultancy Inflation Insights said the headline figure had been dragged down by the “plunge” in education positions, “which most likely reflects seasonal adjustment issues around summer school closings”."}],[{"start":223.04,"text":"Separate data released this week by payroll provider ADP also pointed to a sharp slowdown in private-sector hiring in July, with job growth falling by more than half to an estimated 44,000."}],[{"start":238.83,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1786135337_5808.mp3"}