PNN – The Financial Times newspaper, in a report, referred to the issue of controlling inflation in Europe as well as wage growth in Japan, comparing it to the United States, and wrote that the job situation in the country is “disorderly” due to Trump’s trade war.
According to the report of Pakistan News Network from this British newspaper: US President Donald Trump’s global trade war put a huge strain on US jobs in April, with new job creation expected to fall sharply.
Data suggests that job creation has been stagnant in recent months, with just 125,000 jobs added in April, according to a Bloomberg survey of economists. The data also shows that government workers have also been sharply reduced despite Elon Musk’s reforms.
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Analysts expect the unemployment rate to remain at 4.2%, which would be a factor in preventing the Federal Reserve from cutting interest rates next month.
Analysts at BNP Paribas wrote: We do not believe that the April jobs report or the first quarter GDP data will provide a definitive conclusion for the central bank to act. We expect hiring to be moderated by uncertainties, but still strong enough to keep the unemployment rate at 4.2%.
The European Central Bank (ECB) is on the verge of reaching its 2% inflation target, and April inflation data is likely to confirm this achievement. But international conditions, especially Trump’s new heavy tariffs, have added uncertainty to the economic environment. These tariffs could hurt consumer confidence and European economic growth. In addition, falling oil prices and a stronger euro are likely to push inflation lower in the coming months.
The Bank of Japan (BOJ) has no plans to raise interest rates for now, despite rising inflation (3.4% in Tokyo). The bank is focused on whether wage growth and inflation are sustainable. While economic data looks positive, the risks from Trump’s tariffs have made policymakers more cautious. As a result, Japan is likely to raise interest rates in the second half of 2025 if the economic pressures from Trump’s policies are managed.