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US job growth slows in June amid falling labor participation, signaling stagflation risks.

Market News
31 Jul 2026
Seeking Alpha
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Bearish
US job growth slows in June amid falling labor participation, signaling stagflation risks.

The US labor market showed signs of strain in June as the labor force shrank due to a declining participation rate, which lowered the unemployment rate but raised concerns for July. Job creation has slowed while labor shortages persist, creating stagflationary pressures. Although consensus expects job growth to improve in July with 91,000 new jobs, this is likely a temporary rebound rather than a sustained recovery. This situation highlights ongoing challenges in the US labor market that could impact economic stability going forward.

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