Tariff Turbulence: U.S. Job Market Faces Uncertain Future

U.S. job growth slowed in March due to mass public sector layoffs and businesses' hiring hesitance amid import tariffs. Economists predict further deterioration in the labor market as President Trump's tariffs escalate economic uncertainty, potentially leading to rising unemployment and a possible recession.

The U.S. job market experienced a slowdown in March, attributed to significant layoffs in the public sector and businesses' reluctance to hire due to import tariffs. President Donald Trump's 10% minimum tariff on most imports has triggered global market instability and a sharp rise in the nation's tariff rate.

Economists warn of potential layoffs as businesses and consumers reduce spending, leading to a chaotic economic environment. Some experts foresee the unemployment rate rising above 4.5% as labor conditions worsen. The labor market's decline could be further exacerbated by retaliatory tariffs.

Amid these conditions, the Federal Reserve is expected to cut interest rates despite enduring inflation concerns. As the economic landscape shifts, the Fed faces challenges balancing rate cuts with inflation control, while the threat of a recession looms over the coming months.

(With inputs from agencies.)