There’s no sugar coating the overarching message in the July jobs report – the economy is struggling. Job growth is at a virtual standstill, and concentrated in a few sectors. While unemployment is low, that’s only because those losing their jobs are leaving the workforce, too discouraged to look for a job, as few businesses are hiring. Hours worked are low and are slumping lower. Wage growth continues to decelerate and is below the rate of inflation, a clear tell that the job market is operating below full-employment despite the low unemployment rate. No wonder most Americans say they are upset about their finances and the economy’s performance.
Mark Zandi (post published 2026-08-07) says the July 2026 jobs report shows job…
Brief
The July 2026 jobs report, according to Mark Zandi, signals a weakening labor market: overall job growth is at a virtual standstill and concentrated in a few sectors. Low unemployment masks slack as many job losers leave the workforce; hours worked are falling and wage growth has decelerated below inflation, leaving most Americans upset about their finances.
Why it matters
Mark Zandi (post published 2026-08-07) says the July 2026 jobs report shows job growth at a virtual standstill and concentrated in a few sectors.
Key details
- Low unemployment is misleading because many job losers are leaving the labor force; hours worked are falling and wage growth has decelerated and is running below inflation, indicating the job market is operating below full employment.
- Zandi reports most Americans say they are upset about their finances and the economy's performance.