The forecasts had anticipated the creation of 115,000 jobs that month.
The number of unemployed increased by 221,000.
“A notable deterioration in U.S. labor market conditions seems to be underway,” stated Scott Anderson, chief economist for the U.S. at BMO Capital Markets.
BMO Capital Markets also noted that this situation had been anticipated since the onset of the trade war and with more restrictive immigration measures.
Meanwhile, Daniel Zhao, chief economist at Glassdoor, said, “We are finally in the eye of the storm,” following several months of warning signs.
U.S. President Donald Trump implemented a tariff policy on nearly all countries, believing the tariffs would bring industry back to North America and generate new revenue.
Economists have been warning that the cost of tariffs will be passed on to the consumer.
Companies like Walmart and Procter & Gamble, which produces toothpaste, toilet paper, and detergent, have already announced price increases.
Last month, the U.S. industry cut 11,000 jobs after reducing 15,000 in June and 11,000 in May.
