usa
US hiring slows in June as employers remain cautious
U.S. employers slowed hiring last month and added only 57,000 jobs, less than half the previous month’s total and a sign companies still have a cautious economic outlook.
The Labor Department said Thursday that the unemployment rate declined to a low 4.2% from 4.3% in May, though the drop mostly occurred because many people out of work gave up looking and were no longer counted as unemployed.
The figures suggest businesses remain wary of the economy’s health, with inflation at a three-year high and consumer confidence near post-pandemic lows. The job market has been stuck in a “low-hire, low-fire” rut in which the employed enjoy some job security with layoffs low, but those out of work are struggling to get hired. Strong hiring in the spring raised hopes the economy was escaping that dynamic, but Thursday's report suggests job gains are still muted.
“We are in a market that is still very fragile, and still susceptible to shocks happening,” Nicole Bachaud, labor economist at ZipRecruiter, an online job platform, said. "There is still a lot of hesitation on the part of employers and workers themselves to make any moves.” She noted that other government data shows companies are posting more jobs but not filling them.
Hiring has improved from last year, when employers added fewer than 10,000 jobs a month, on average. In this year's first half the pace improved to 92,000. Yet healthy job gains that were initially reported in April and May were revised lower, from 172,000 down to 129,000 in May and from 179,000 to 148,000 in April.
Restaurants and bars cut jobs last month, despite the World Cup
Restaurants, bars, and hotels cut 61,000 jobs, a sharp disappointment for those who expected the World Cup tournament that is taking place in multiple U.S. cities would lead to at least temporary job gains. Retailers also shed 7,500 jobs.
Chad Moutray, chief economist at the National Restaurant Association, said member companies are seeing signs consumers are pulling back on eating out, particularly outside higher-income households. It reflects a “K-shaped” economy, where wealthier households pull ahead of middle- and lower-income ones.
“We continue to hear that a lot of Americans are struggling to make ends meet," he said. “If you’re catering to the upper-end of the K, you’re doing fine. If you’re catering to the lower part of the K, you’re seeing some challenges in the last couple of months.”
Many Americans worry about the impact of artificial intelligence on employment, but for now AI may actually be adding jobs. Last month professional and business services, a category that includes architecture, engineering, and software development — occupations expected to be vulnerable to AI — added 36,000 jobs. Healthcare, the economy's most consistent job creator, added nearly 47,000 positions.
Construction firms added workers, possibly because of AI buildout
Blue-collar industries added a modest number of jobs, with manufacturers adding 3,000 positions and construction firms 11,000.
Scottsville, New York-based Power & Construction Group added some of those jobs as it seeks to keep up with the demand for greater electrical capacity in the state. Thomas “Murph” Murphy, the company's vice president, said they are looking to hire another 15-20 workers after adding 47 in the past two months.
The company is seeking more electricians, laborers, and heavy equipment operators to join the 350 workers on staff, Murphy said.
Murphy said his company is competing for workers with firms building data centers in other states -- not many are being built in New York -- and he has to work to convince young people to choose construction as a career. The firm recently built a training center to bring newer, younger workers up to speed.
“The grid can’t handle all the new power that everybody’s using,” Murphy said, noting the increase in laptops, phones, and tablets in many Americans’ homes. “We need to continuously build the grid. But it does take time.”
Jobs data could keep Federal Reserve on sidelines
Thursday's report suggests that hiring and wage gains aren't accelerating enough to worsen inflationary pressures in the economy, which could allow the Federal Reserve to keep its key rate unchanged at its current level of about 3.6%.
Previously, many Wall Street investors had expected the central bank to lift its key rate this year as hiring appeared to be accelerating. The prospect of no rate cuts lifted the stock market in mid-morning trading, with the broad S&P 500 index up 0.7%.
“Today’s data hit the sweet spot for markets — strong enough to keep worries about growth at bay, but soft enough to reduce the probability of a rate hike,” said Eric Winograd, chief U.S. economist at AB Global, an asset management firm.
Fed chair Kevin Warsh in Portugal Wednesday reiterated that he would push inflation back to the Fed’s 2% target, though he wouldn’t comment on whether the Fed would raise rates at its next meeting, later this month.
Average paychecks, meanwhile, rose 3.5% from a year ago, a decent gain but one that still trailed inflation, leaving many Americans struggling to keep up with rising costs for necessities such as food, gas, and housing.
Historically, a job gain of just 57,000 would be seen as weak. Yet as more Americans retire and new immigration has dropped sharply, the U.S. workforce has shrunk in the past year. As a result, even gains at that level are enough to keep the unemployment rate unchanged over time.
Fewer Americans are working or seeking work
Last month, in fact, the workforce declined sharply, with the percentage of Americans working or looking for jobs falling to 61.5%, down from 61.8% in May. It's the lowest level in five years.
Much of the decline reflected the aging of the population, as more than 10,000 Americans turn 65 every day and many retire. Yet the proportion of Americans aged 25 through 54 who are working or searching for jobs also fell last month.
Mismatches between job-seekers and employers could be slowing hiring as well. Bachaud said AI adoption could have encouraged a trend she's noticed on their website: Companies are increasingly posting jobs seeking more senior, experienced workers, while job hunters are instead gravitating toward entry-level jobs.
That gap “just shows the mismatch between what employers are looking for and what current job seekers have to offer,” she said. It has likely contributed to the frustration many job seekers feel even as the unemployment rate remains low.
2 days ago
Trump Accounts to launch on US Independence Day, offering $1,000 for newborns
The administration of US President Donald Trump is set to launch a new savings and investment programme, known as Trump Accounts, on July 4, offering a government-funded $1,000 investment account for eligible newborns.
The initiative, unveiled as part of events marking the 250th anniversary of the signing of the US Declaration of Independence, aims to encourage long-term savings and expand stock market participation among American families.
Under the programme, parents or legal guardians can open investment accounts for children born between January 1, 2025, and December 31, 2028, during Trump's second term. Eligible children who are US citizens and have Social Security numbers will automatically receive a $1,000 government contribution.
Parents may also open accounts for older children who have not turned 18 before the end of the calendar year, although those children will not qualify for the government-funded seed money.
The funds will be managed by private financial institutions and invested in low-cost US equity index funds. The money cannot be accessed until the account holder turns 18 and may only be used for approved purposes, including higher education, purchasing a home or starting a business.
Families will be allowed to contribute up to $2,500 annually in pre-tax income, while employers, relatives, friends and charitable organisations can also make contributions. Annual contributions are capped at $5,000, excluding donations from governments and philanthropic groups.
The programme has already attracted significant private support. Dell Technologies founder Michael Dell and his wife, Susan Dell, have pledged $6.25 billion to provide seed funding for children who do not qualify for the government's $1,000 contribution. Trump also announced that Micron Technology CEO Sanjay Mehrotra will contribute $250 million to the initiative.
Additional commitments have come from investor Brad Gerstner and hedge fund billionaire Ray Dalio, while companies including Uber, Intel, IBM, Nvidia and Steak 'n Shake plan to incorporate Trump Account contributions into employee benefit programmes.
Supporters say the initiative is designed to promote financial independence, broaden stock ownership and give children a stronger financial foundation from birth.
Critics, however, argue that the programme offers little immediate assistance to families facing rising living costs and does not offset reductions in federal programmes such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). They also contend that wealthier families are likely to benefit more because they are better positioned to make regular contributions to the accounts.
Administration officials say parents can begin opening accounts through the programme's official website from July 4.
2 days ago
US Supreme Court blocks Trump bid to restrict birthright citizenship
The US Supreme Court on Tuesday reaffirmed the constitutional guarantee of birthright citizenship, rejecting an executive order by President Donald Trump that sought to deny automatic citizenship to children born in the United States to parents who are in the country illegally or temporarily.
The ruling preserves the long-established interpretation of the Citizenship Clause of the Fourteenth Amendment, under which nearly all children born on US soil are recognized as American citizens regardless of their parents' immigration status.
The decision came on the final day of the court's current term, which featured several high-profile cases involving Trump's broad assertions of presidential authority. Reacting to the verdict, Trump described the outcome as "too bad."
Writing for the majority, Chief Justice John Roberts said the court was not creating a new legal standard but reaffirming a principle deeply rooted in both English common law and American constitutional history.
Roberts noted that citizenship has historically depended on the place of birth rather than the immigration status or permanent residence of a child's parents. He cited debates surrounding the adoption of the Fourteenth Amendment, saying its framers intended to extend citizenship to every person born in the country.
"We keep that promise today," Roberts wrote, adding that the court was simply upholding a long-established constitutional understanding.
Justice Clarence Thomas, in the principal dissent, argued that the Citizenship Clause should not automatically apply to all children born in the United States. He maintained that the amendment was intended primarily to secure citizenship for formerly enslaved people following the Civil War and that it required a stronger legal connection, or domicile, to the country.
Thomas said Trump's executive order was not unconstitutional on its face, arguing that it was consistent with what he described as the original meaning of the Citizenship Clause, including in cases involving children of parents who were not legally or permanently settled in the United States.
Justice Ketanji Brown Jackson joined the majority opinion and also issued a separate opinion criticizing Thomas' interpretation of the Reconstruction Amendments.
Jackson argued that the Thirteenth, Fourteenth and Fifteenth Amendments were designed to eliminate systems of caste and subordination rather than serve as narrowly tailored measures benefiting only formerly enslaved people. She said Thomas' reading of the Citizenship Clause failed to reflect the broader historical purpose behind those constitutional changes.
In other decisions issued Tuesday, the Supreme Court upheld state laws in about half of the country that bar transgender girls and women from competing on female public school and college sports teams. The court also struck down federal limits on political party spending in election campaigns.
A day earlier, the court delivered another major ruling in Trump's favor by allowing the president to remove the heads of independent federal agencies at will. However, it left Federal Reserve Governor Lisa Cook in her position while she challenges Trump's attempt to dismiss her over allegations of mortgage fraud.
3 days ago
Democratic lawmaker urges end to US military aid for Israel ahead of House vote
Palestinian-American Democratic Congresswoman Rashida Tlaib has said she will support a bill seeking to block about $3.3 billion in US military aid to Israel, ahead of a vote expected later this week.
“We should not spend another cent arming a military that is committing genocide in Palestine, ethnically cleansing Lebanon, and committing war crimes in Iran,” Tlaib wrote on X.
“A majority of Americans and a supermajority of Democrats support ending military aid to Israel. It’s time their representatives listened.”
Other Democratic lawmakers who have said they will vote in favour of the bill include Alexandria Ocasio-Cortez, Greg Casar and Ilhan Omar.
The legislation was introduced by Republican Congressman Thomas Massie, who has consistently opposed US military interventions abroad, including the war on Iran.
The Kentucky lawmaker drew the ire of President Donald Trump and lost the Republican House primary in May to a Trump-backed challenger.
That contest became the most expensive US House primary race in history. #From Al Jazeera
4 days ago
US using technical talks in Qatar to ease Strait of Hormuz tensions
The United States is using indirect technical talks with Iran in Qatar to help reduce tensions over the Strait of Hormuz, even though there are no direct negotiations between Washington and Tehran, according to a US national security expert.
Scott Uehlinger, a former CIA officer, told that the main goal of the US negotiators is to use the already scheduled technical talks to prevent potential problems in the future.
"I think that the main point of the American negotiators is to try to use the technical talks, which have already been scheduled, as a way of heading off some difficulties, which are clearly lying in the future," Uehlinger said.
He said those challenges are linked to what he described as Iran's "diplomatic gambit" to gain greater control over the Strait of Hormuz.
According to Uehlinger, Washington is seeking to better understand Iran's role in the strategic waterway under the memorandum of understanding (MoU), as well as clarify details that could be included in a future agreement.
"The US is trying to clarify what Iran's actual role is in the strait, according to the MoU, and further details that perhaps would be included in a future agreement," he said.
Uehlinger added that the most favourable outcome for Washington would be an arrangement under the MoU in which Qatar, together with other Gulf states, negotiates with Iran to form a coalition that would oversee and regulate maritime traffic through the vital shipping route. #Reports Al Jazeera
4 days ago
Search continues for missing US Marine off California coast
Multiple US military and federal agencies continued searching on Sunday for a Marine who went missing during a training exercise off the coast of Southern California, officials said.
According to a US Navy statement, search operations began shortly after midnight on Thursday after the Marine was reported missing from the USS Anchorage during integrated training involving the Makin Island Amphibious Ready Group and the 13th Marine Expeditionary Unit.
The Navy said the operation shifted from a search-and-rescue mission to a search-and-recovery effort on Friday evening. The identity of the missing Marine has not been released pending notification of family members.
"Our thoughts and prayers are with the family and all who are affected during this difficult time," the Navy said in a statement.
Officials said the search area spans about 2,400 square miles (6,200 square kilometres) and involves three surface vessels and 12 aircraft from the Navy, Marine Corps, Coast Guard and Air Force.
The incident marks at least the second major search operation involving missing US military personnel in recent weeks. In May, the remains of the second of two US Army soldiers who disappeared during military exercises in Morocco were recovered, ending a multinational search operation involving air, naval and artificial intelligence assets.
The USS Anchorage is an amphibious transport dock ship based at Naval Base San Diego.
6 days ago
US, Iran to establish direct IRGC channel in Doha as tensions over Hormuz persist
US Vice President JD Vance has said on Thursday The United States and Iran have agreed to establish a direct communication channel involving Iran's Islamic Revolutionary Guard Corps (IRGC) to help reduce the risk of further conflict.
In an interview with British news website UnHerd, Vance said the arrangement would involve Iranian and US military officials meeting in Doha to resolve disputes through direct engagement.
According to Vance, the two sides agreed that an IRGC representative and an official from the US Central Command (CENTCOM) would meet in the Qatari capital to address issues and prevent tensions from escalating.
Vance also said the United Arab Emirates has opened new channels of communication with Iran, including with the IRGC, and is holding unprecedented discussions with Tehran on various economic incentives.
Meanwhile, Iran has rejected any US-backed proposal to establish a separate southern shipping corridor through the Strait of Hormuz.
Abas Aslani, a senior research fellow at the Center for Middle East Strategic Studies in Tehran, said Iran favours coordinated transit arrangements for vessels passing through the strategic waterway and opposes any alternative route proposed under US pressure.
Speaking to Al Jazeera, Aslani said both Washington and Tehran are still trying to shape future arrangements in the Strait of Hormuz despite their recent memorandum of understanding.
He said Iran intends to work with Oman during the current 60-day period to finalise new transit mechanisms and plans to impose service fees for vessels using the strait after that period.
However, Aslani said Tehran considers any move by Oman, under US pressure, to open a separate southern corridor as unacceptable.
He warned that failure to resolve the dispute over transit arrangements could undermine broader diplomatic efforts between Iran and the United States.
Source: Al Jazeera
9 days ago
US Supreme Court allows Trump administration to revive restrictive asylum policy at Mexico border
The US Supreme Court on Thursday cleared the way for the Donald Trump administration to potentially reinstate a controversial immigration policy that had previously limited the number of migrants allowed to seek asylum at the US-Mexico border.
In a 6-3 ruling, the court overturned a lower court order that had blocked the practice, known as “metering,” which was first introduced under former President Barack Obama and later expanded during Trump’s first term.
The policy restricted the number of asylum applications accepted each day at border crossings, leading to long waiting lines and makeshift camps on the Mexican side of the border. Immigration advocates argued that the practice triggered a humanitarian crisis, while the Trump administration maintained it was necessary to manage rising numbers of asylum seekers.
Although the policy is not currently in effect, administration officials argued that it remains an important tool that should be available to future presidents.
Federal attorneys said migrants turned away at the border were not denied asylum permanently and could return later to apply, though critics noted that waitlists often stretched into the thousands.
The case is one of several immigration-related disputes before the Supreme Court, including challenges involving birthright citizenship and temporary legal protections for migrants fleeing conflict and instability.
Under US law, migrants who reach American soil are generally entitled to apply for asylum and seek protection if they fear persecution in their home countries.
However, the Justice Department argued that individuals stopped before being formally admitted into the country had not legally “arrived” in the United States and therefore were not entitled to immediate asylum processing.
Writing for the majority, Justice Samuel Alito said, “A guest does not arrive in a house when he knocks on the front door.”
Justice Sonia Sotomayor strongly dissented, warning that the ruling undermines America's long-standing commitment to offering refuge to those fleeing persecution.
The metering policy was first used during the Obama administration amid an influx of Haitian migrants at the San Diego-Tijuana border crossing and was later expanded to all crossings along the Mexican border during Trump's first term.
The practice ended in 2020 when broader restrictions were imposed during the COVID-19 pandemic and was formally rescinded by former President Joe Biden in 2021.
A federal judge in California ruled in 2021 that the policy violated asylum seekers' rights and federal law requiring migrants to be screened for fear of persecution. That decision was later upheld by an appeals court before reaching the Supreme Court.
US asylum law allows individuals seeking refuge to apply for protection regardless of whether they entered the country legally, provided they can demonstrate a credible fear of persecution based on factors such as race, religion, nationality, political opinion or membership in a particular social group. Those granted asylum are allowed to remain in the United States, work legally and eventually apply for permanent residency and citizenship.
9 days ago
Senate Republicans reject Iran war powers resolution after Trump rebukes dissenters
Senate Republicans late Wednesday voted down a war powers resolution aimed at curbing President Donald Trump's military actions against Iran, a day after a similar measure had passed, following intense pressure from the president.
The vote came hours after Trump sharply criticized Republican senators during a private lunch meeting for allowing the earlier resolution to advance, deepening tensions within the party over the administration's Iran policy.
The dispute has complicated Republican efforts to focus on domestic issues ahead of the elections, particularly concerns over affordability and the economy.
During the closed-door meeting with Senate Republicans, Trump questioned why any GOP senator would support a measure seeking to limit further US military action against Iran.
Republican Senator Bill Cassidy of Louisiana, one of four Republicans who backed the resolution, defended his position, saying the administration had failed to adequately explain its objectives in Iran to the American people.
"This is supposed to last four weeks. It's lasted four months. Our original objectives have not been achieved," Cassidy later told reporters.
According to Cassidy, the exchange became heated when he said he would continue supporting war powers resolutions until Congress received a full briefing on developments in Iran.
Trump reportedly raised his voice and repeatedly instructed Cassidy to sit down. A person familiar with the private meeting said the president at one point referred to the senator as a "lunatic."
Cassidy acknowledged that he also lost his temper during the confrontation, saying afterward that his reaction "was not appropriate."
Meanwhile, congressional Democrats on Wednesday called for investigations into renovations at the Lincoln Memorial Reflecting Pool, adding to the political turbulence surrounding the president's troubled $16 million rehabilitation project.
9 days ago
Zelenskyy says Russia shifting air defenses to protect Moscow
Ukrainian President Volodymyr Zelenskyy has claimed that Russia is redeploying a large portion of its air defense systems to protect key locations, including Moscow, as Ukrainian long-range drone attacks continue to strike targets deep inside Russian territory.
In a video address late Wednesday, Zelenskyy said Russia has strengthened defenses around Moscow, the town of Valdai, where Russian President Vladimir Putin has a residence, and the Kerch Bridge, a crucial supply route linking mainland Russia with Crimea.
According to Zelenskyy, hundreds of air defense missile launchers have been concentrated around Moscow, while nearly 90 launchers have reportedly been moved to Valdai from other regions.
Ukraine has significantly increased drone strikes on Russian military and energy facilities in recent months. Kyiv says the attacks have disrupted fuel supplies and military logistics, creating additional challenges for Russian forces more than four years into the war.
Ukrainian drones have recently targeted Moscow and St. Petersburg, while Kyiv is also seeking to weaken Russian control over Crimea, the Black Sea peninsula annexed by Russia in 2014.
Zelenskyy suggested that the redeployment of air defense systems could leave other parts of Russia more exposed to Ukrainian drone attacks. He said Ukraine's latest generation of drones can travel more than 1,500 kilometers.
"There are growing difficulties for Russia because Putin continues to reject proposals for meaningful talks and a peaceful settlement," Zelenskyy said.
Trump praises Zelenskyy
US President Donald Trump, who has previously criticized Zelenskyy, offered rare praise for the Ukrainian leader on Wednesday.
Speaking at the White House, Trump described Zelenskyy as "courageous" and said he was "doing pretty well" in the conflict.
Zelenskyy said he secured commitments for continued international support during the recent G7 summit and expressed hope that additional military assistance would strengthen Ukraine's campaign against Russia.
He added that Ukraine's operations, including those targeting Crimea, had been carefully planned and could increase pressure on Moscow to pursue peace negotiations.
Ukraine watching Belarus closely
Zelenskyy also said Ukrainian intelligence believes Belarus has switched off signal relay equipment that Kyiv claims was used to help guide Russian drones toward targets in Ukraine.
Last week, Ukraine demanded that Belarus remove the equipment and warned it could take action if the systems remained operational.
Despite the reported shutdown, Zelenskyy said concerns remain about Belarus, which allowed Russian forces to use its territory during the initial invasion of Ukraine in 2022.
Ukrainian authorities on Wednesday ordered mandatory evacuations from communities in the northern Chernihiv region near the Belarus border starting July 1.
Meanwhile, the Washington-based think tank Institute for the Study of War said Belarusian leader Alexander Lukashenko continues to balance relations between Moscow and Kyiv, while avoiding direct involvement in the war.
Ukraine's military chief, Oleksandr Syrskyi, recently said the country is strengthening defenses along its northern border and establishing new drone units in the area.
Russian strikes hit gas stations in Ukraine
Russia launched one ballistic missile and 90 attack drones overnight, according to Ukraine's air force.
A Russian drone strike hit a gas station in the northeastern Sumy region on Thursday morning, injuring four people, including two employees, regional governor Oleh Hryhorov said.
He added that Russian forces have targeted gas stations in the region 13 times this month.
In the southern city of Zaporizhzhia, another overnight Russian attack injured a woman and damaged a gas station, according to regional governor Ivan Fedorov.
Russia's Defense Ministry said its air defense systems shot down 269 Ukrainian drones between late Wednesday and early Thursday. Several Russian airports also temporarily restricted flights during the attacks.
9 days ago