A sharp slowdown in US job growth has led to disagreement among Wall Street economists. Some cite a reduced supply of workers due to immigration restrictions, while others suggest a worrying decrease in demand. This distinction is pivotal for predicting future layoffs and Federal Reserve interest rates. Recent labor reports have shown only 35,000 jobs added on average over three months, prompting a closer examination of the labor market dynamics influenced by recent trade and immigration policies.
"Whether what we're seeing is all immigration effects or if it's true demand effects is definitely the key question," said Veronica Clark, an economist at Citigroup Inc. "There very likely are some immigration effects in the data, but details also suggest weaker demand unrelated to immigration, which seems to be getting worse."
The latest jobs report from the Bureau of Labor Statistics, published on Aug. 1, shocked financial markets with weak hiring figures for July and steep downward revisions to the prior two months.
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