Morning Business Report: July layoffs fall to two-year low as Strait of Hormuz deal hits snag

U.S. layoffs fell to their lowest level in two years in July despite concerns about artificial intelligence and economic uncertainty surrounding the war with Iran.

(LILAMAX)-U.S. layoffs fell to their lowest level in two years in July despite concerns about artificial intelligence and economic uncertainty surrounding the war with Iran.

U.S.-based employers announced 33,429 job cuts in July, according to Challenger, Gray & Christmas. That’s down 27% from June and 46% from the same month last year.

The latest labor numbers come as concerns continue about the impact artificial intelligence could have on employment. A survey commissioned by Superhuman and conducted by Talker Research found just 45% of college students are optimistic about the job market they will enter after graduation. About a third have adjusted their career path or changed their major.

Meanwhile, a proposed plan involving shipping through the Strait of Hormuz has hit a snag.

Under Iran’s proposal, U.S. and Israeli ships would be barred from the Strait of Hormuz. Iran would also impose penalties worth up to 20% of a ship’s cargo value for violations of the terms. Reports indicate the U.S. quickly rejected the proposal.

The lack of an agreement with Iran weighed on Wall Street, with stocks weakening as the trading session continued. Investors are also awaiting the latest monthly U.S. jobs report.

Americans are also facing growing concerns about taxes. Economist Stephen Moore cited an estimate from the Committee to Unleash Prosperity showing Americans paid about $8.19 trillion in taxes in 2025, compared with roughly $7.39 trillion spent on food, clothing and housing combined.