WTW – Global Markets Overview, Aug 2025

The main theme of the report concerns the state of the labor market in the United States and its impact on the economy.

Key findings include a weakening labor market in the US, especially in cyclical sectors. Job growth in July was below expectations, unemployment slightly increased, while labor force participation decreased. There is a slowdown in economic activity in the US, which may lead to a reduction in interest rates by the Federal Reserve. The impact of trade tariffs on inflation and economic growth is also discussed, along with expectations for economic growth in 2026, supported by US government fiscal policy.