Breaking it Down: A Shifting Economy & You

August 12, 2025

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The economy made headlines again last week, with slower job growth and a slight uptick in unemployment. Here’s what I’m paying attention to:

1. Job Growth Slows: Nonfarm payrolls increased by only 73,000 in July, falling short of expectations. Revisions for May and June show a combined loss of 258,000 jobs, signaling a cooling labor market.1, 2

• What does this mean for you? Slow job growth points to a weakening economy, which can be a precursor to a recession. Now is the time to ensure your financial plan is recession-ready.

2. Unemployment Edges Up: The unemployment rate edged up to 4.2%, with labor force participation dipping to 62.2%. Factors include immigration restrictions and baby boomer retirements.1, 2

• What does this mean for you? Rising unemployment can signal economic uncertainty and challenges ahead. It may lead to reduced spending, slower growth and changes in the job market. During these times, review your financial strategy to ensure it aligns with your goals. Check your savings, investments, and expenses to stay prepared for economic shifts.

3. Health Care and Retail Rebound: Health care has led to job growth, adding 55,000 roles—especially in ambulatory care and hospitals — while retail saw gains of 15,700 jobs.2

• What does this mean for you? Growth in these sectors could bring exciting opportunities for investment. Whether you want to diversify your portfolio or stay updated on market trends, understanding these changes is key.

4. Inflation Concerns: President Trump’s aggressive tariff and immigration policies have economists raising concerns about stagflation — a mix of slow growth and persistent inflation.3

• What does this mean for you? Inflation can erode purchasing power and impact savings. Now is the time to evaluate your portfolio and ensure it’s positioned to combat inflation.

Your Next Steps

Periods of economic turbulence can feel unsettling, particularly when thinking about your financial goals. The good news? These changes don’t have to derail your plans. It’s all about having a strategy in place — one that adjusts to market conditions while staying focused on the big picture.

If you’re unsure how these changes could impact your financial future, don’t wait to get answers. With the right guidance, you can tackle today’s challenges head-on and stay on track toward your goals.

Reach out o schedule a phone conversation.

Warmly,

Barry

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“Inaction breeds doubt and fear. Action breeds confidence and courage.
If you want to conquer fear, do not sit home and think about it. Go out and get busy.”

– Dale Carnegie

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Sources:
1 Jeff Cox. CNBC. Aug. 5, 2025. “Contentious July jobs report confirms the U.S. economy is slowing sharply. Here’s why.” https://www.cnbc.com/2025/08/04/contentious-july-jobs-report-confirms-the-us-economy-is-slowing-sharply.html. Accessed Aug. 11, 2025.
2 Lucia Mutikani. Reuters. Aug. 1, 2025. “US labor market cracks widen as job growth hits stall speed.” https://www.reuters.com/world/us/us-labor-market-cracks-widen-job-growth-hits-stall-speed-2025-08-01/. Accessed Aug. 11, 2025.
3 Megan Cerullo. CBS News. Aug. 8, 2025. “Why Trump’s sweeping new tariffs are fueling stagflation concerns among economists.” https://www.cbsnews.com/news/trump-tariffs-inflation-gdp-stagflation-concerns/. Accessed Aug. 11, 2025

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