Trade Tensions Taking Toll On U.S. Employment
Monday, the National Association of Business Economists released a survey stating that one-fifth of companies hired more workers over the past three months and resulting in the weakest point since 2012, according to Markets Insider.
The decline was partially attributed to the U.S.-China trade war that has weighed on the economic outlook. The economy was already expected to be slow in 2019, and tariffs have made the matter worse. Tariffs have raised costs and decreased cash left over for investments.
"The US economy appears to be slowing, and respondents expect still slower growth over the next 12 months," said Constance Hunter, the president of NABE and the chief economist at the accounting firm KPMG. "Higher tariffs are disrupting business conditions, especially in the goods-producing sector."
The U.S. and China have delayed further economic tactics in the attempt to reach a deal, but the tariffs that were already in effect have remained. Sales in different industries have been affected, and the U.S. has been forced to spend more on products that they previously purchased from China.
U.S. business hiring fell to a seven-year low and the U.S.-China trade war is partially to blame.