The US economy is flashing warning signs, and that's bad news for workers, job seekers, and anyone stretched by high prices.

• The July jobs report was ugly: the country lost jobs when a gain was expected, and prior months were revised sharply lower.
• The unemployment rate fell for a bad reason — people are giving up and dropping out of the workforce, with participation at its lowest since early 2021.
• Wage growth has cooled to a five-year low, so pay is no longer keeping up with inflation and buying power is shrinking.
• Almost all hiring is in low-paid healthcare work, while most GDP growth comes from AI data-center spending, not broad job gains.
• Gas is stuck near $4 a gallon after the Iran conflict pushed up prices, eating into what people have left to spend.

Outlook: With cold weather and hurricane season ahead, gas could climb toward $5 and the weak job market looks set to keep dragging on households.