One of the job market's biggest engines is stalling
The US job market experienced an unexpected decline in July, driven largely by losses in the leisure, hospitality, and retail sectors. Economists suggest that inflation and reduced consumer discretionary spending are causing businesses to slow hiring.
Why it matters
A cooling job market in consumer-facing industries may signal broader economic strain and a potential shift in consumer behavior due to persistent inflation.
Employment in leisure and hospitality fell by 40,000 in July. The Good Brigade/Getty Images The US had a decline in jobs last month, including for two major consumer-facing industries. Leisure and hospitality and retail had two straight months of job losses. Lack of consumer demand due to rising prices could be taking a toll. For years, the bounce back in restaurants, hotels, and other in-person services was one of the big engines of the job market. Those days may be over. The US unexpectedly lost 23,000 jobs in July. Two major consumer-facing industries were among the areas contributing to the first monthly loss since February: Leisure and hospitality and retail together experienced a job loss of 59,400. That follows a loss of 43,000 for leisure and hospitality in June and a decline of 3,700 in retail.
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