'Significantly worse than expected': Tanking jobs report stuns CNN analyst

'Significantly worse than expected': Tanking jobs report stuns CNN analyst
FILE PHOTO: Job seekers stand in line to meet with prospective employers at a career fair in New York City, October 24, 2012. REUTERS/Mike Segar/File Photo

The U.S. economy lost more jobs last month than expected amid a summer hiring slump, marking a sharp slowdown from the month before.

The U.S. economy lost 23,000 jobs in July, a sharp miss from economists' expectations of a 90,000-job gain, according to a new jobs report released Friday by the Bureau of Labor Statistics.

"Frankly, it's not good," said CNN's John Berman, "and significantly worse than expected."

CNN senior reporter David Goldman agreed, saying the July figure marks a significant deterioration from June, when the economy added an already-weak 60,000 jobs.

The drop-off is stark when viewed against hiring trends of the past five years, Goldman added, pointing to a "significant clip" of job growth in 2022 and 2023 that has now reversed, with several months over the past year showing net job losses.

The unemployment rate ticked down to 4.1 percent, but Goldman cautioned that isn't necessarily positive news.

"You usually don't see the unemployment rate fall unless people are dropping out of the workforce," he said, suggesting the decline may reflect discouraged workers exiting the labor market rather than genuine improvement.

Wages present another concern. Goldman said pay growth has fallen below the 3.5 percent inflation rate, reversing a longer stretch in which wages outpaced price increases. "Inflation is once again eating your paycheck," he said.

Health care remained the one consistently strong hiring sector, but Goldman said "22,000 jobs is not going to cut it" given that nearly every other part of the economy is shedding positions.

The report immediately rattled markets, with bond rates falling as investors recalibrated expectations for the Federal Reserve. Goldman said the weak jobs data combined with elevated inflation leaves the Fed in a bind, with diminishing odds of an interest rate cut in September.

He described the market reaction as counterintuitive – falling odds of a rate cut were being read as a positive signal for investors, even though the underlying cause is labor-market weakness.

"That's good news if you're an investor," Goldman said. "It's not great news if you're looking for a job right now."

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President Donald Trump's MAGA movement is splintering, as far-right commentator Tucker Carlson unveils his own 10-point plan for America that, despite being ultranationalist and isolationist, repudiates certain elements of the Trump agenda.

But at the end of the day, former GOP strategist Rick Wilson told MS NOW anchor Eugene Daniels, it's all still just the same old slop that the GOP has shoveled ever since Trump took office.

Daniels asked Wilson whether he thinks Tucker made "some good points," noting that there are rumors he could run a third-party campaign for president and fracture the right further. "How do you think Republicans would deal with this?"

Wilson said that "if that manifesto had come out from anyone else," it might have had at least a few points people took seriously even if they don't agree with the entire thing. "But there's an old thing in advertising called the dog food rule. And no matter how pretty the package is, if the dog food tastes bad, you're not going to buy it."

The upshot, he continued, is that Carlson is "trying to package up some other dog food here that most Americans won't accept, and even most Republicans are going to have some variation on."

It's certainly a populist agenda, Wilson noted, touching on things like ending war, lifting farmers and factory workers, and reining in White House corruption. But "while this touches some of that populism in the Trump era, it also runs into the reality that this party has been transformed by Donald Trump in ways that make it a cult of personality in ways that make it much meaner and much, much more prone to cruelty and conspiracy theories."

And the Carlson manifesto, he added, "sounds like it came out of a focus group designed to get center-right voters. But what's behind it ... may not be the same dog food."

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A Republican lawmaker argued Friday that President Donald Trump was using an unconventional move — and playing mind games — with Iran's leader.

Sen. John Hoeven (R-ND) told TMZ that when Trump refers to the ayatollah as "the gay ayatollah" it's on purpose.

"The president wants to put as much pressure on them as he can, so he's trying to keep them off balance," Hoeven said. "So he's doing a lot of things to keep the regime, which is an irrational, oppressive regime [that] oppresses their own people."

Trolling Iran has become part of Trump's perceived strategy, and how he wants to pressure its regime, Hoeven explained.

"I think he's messing with them in a way to keep them off balance and create division over there," he added.

Iran has reportedly taken similar measures against Trump. Reports indicate Tehran has recruited senior psychologists to tailor messages for what they described as Trump's "impaired mental state," specifically targeting the president.

President Donald Trump threatened to take State Department paintings home during a mining roundtable Friday, breaking off mid-speech to size up the room's art and declare, "I'm taking it."

The event was held in the Benjamin Franklin State Dining Room at the State Department, where Secretary of State Marco Rubio hosted nearly 200 mining executives.

The room holds more than 5,000 pieces of American art and artifacts — gifts from private citizens — valued at over $90 million, according to the State Department.

Trump opened his remarks by touting the administration's mining investments, according to a White House transcript.

"I'm delighted to be here at the Department of State to announce some of the largest ever investments in American mining," Trump said.

The president seemed to drift off topic mid-speech as he noticed valuables in the room.

"It's a beautiful building, but — you know, I look at — the president's allowed to remove things from any building, and I'm liking the chandeliers," Trump said. "I really — I like those Corinthian columns, but I don't know. Cutting them out would be not good."

"Those are beautiful columns, but I'm allowed to do it," he added. "Every once in a while, I'll come in here and grab a painting and put it at the Oval Office. Right? But not too much."

Later in the event, Rubio tried to thank the president, and accidentally pointed him toward a target.

"Thank you for coming to the State Department. We like this room a lot too, and obviously don't look back. There's a painting up here. Just don't — uh-oh," Rubio said.

"I like that. That's a good one. I'm taking it with me," Trump replied.

"I shouldn't have said anything," Rubio said.

The White House said Trump announced more than $2 billion in mining investments and $180 million in mining school grants at the event.

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