Kathmandu: A recent report by the US Bureau of Labor Statistics has sparked concern among economists and policymakers, revealing a sharp slowdown in the country’s labor market. The data shows that only 73,000 new jobs were added in Shrawan, far below projections, while the unemployment rate climbed to 4.2 percent.

In addition to the underwhelming monthly performance, the Labor Department revised job data from Jestha and Asar, showing a combined drop of 258,000 jobs—a revision it described as "larger than normal."

Economists have linked the current labor market weakness to lingering impacts of protectionist customs policies. The high tariffs introduced during Donald Trump’s previous term on key trading partners have, according to experts, heightened market uncertainty and dampened both consumption and investment.

Dean Baker, co-founder of the Center for Economic and Policy Research, warned that slower employment and wage growth could reduce consumer spending, further weakening the broader economy.

In response to the disappointing figures, experts believe the US Federal Reserve may soon lower interest rates in an attempt to stimulate economic activity. Gary Huffbauer, a senior fellow at the Institute for International Economic Policy, noted that rate cuts could help offset the negative trends.

Meanwhile, President Donald Trump abruptly dismissed Dr. Erica McEntire, Commissioner of the Bureau of Labor Statistics, following the report’s release. Trump accused her of data manipulation, though he has presented no evidence to support the claim. The move has drawn sharp criticism from economists and analysts, who say the dismissal is politically motivated and may undermine the credibility of future government statistics.