Inflation still looms large as tariffs go into effect coupled with many people being nervous about their jobs!
Employment Uncertainty
The U.S. job market is starting to look noticeably weaker than it did just a few weeks ago. According to the Bureau of Labor Statistics report on August 1st, only 73,000 new jobs were added in July. What’s more concerning is that previous months’ numbers were revised downward—suggesting the employment picture is worse than initially believed.
While the unemployment rate held steady at 4.2%, the report shows that more people dropped out of the labor force. Over the past three months, job growth has averaged just 35,000 new positions per month—the slowest pace we’ve seen since the pandemic began in 2020.
Closer to home, layoffs have been accelerating throughout Silicon Valley in 2025. The tech sector is facing both economic pressure and major restructuring as companies pivot aggressively toward artificial intelligence. Industry estimates show that more than 80,000 tech jobs have been cut across 150+ companies in the region by the end of July. And it’s not just about trimming costs, many executives are saying these layoffs are the result of AI adoption fundamentally changing the types of roles they need.
New Tariffs
Meantime, economic uncertainty and inflation remain on the forefront as the United States is rolling out a sweeping overhaul of its tariff policy, marking one of the broadest expansions of import duties in recent history. President Trump has imposed new country-specific tariffs on nearly 70 trading partners, with rates ranging from 10% to as high as 41%, affecting a vast array of goods. While these tariffs were initially set to take effect August 1, most formally began on August 7 to allow for final adjustments by U.S. Customs. Canada is an exception, facing an immediate tariff increase to 35% on many products. Baseline tariffs remain at 10% for certain countries, but nations with which the U.S. runs trade deficits face a higher 15% rate, and countries like Mexico and China have separate ongoing negotiations or extensions. Most economists believe that once tariffs begin, prices will rise on most consumer goods.
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