What a difference a job report makes. Earlier in the summer, people were worried that the economy was too hot. But now – in response mainly to weaker-than-expected employment data released on Aug. 2, 2024 – stocks are plunging. Some analysts even worry that a recession could be on the horizon.

As a professor of business economics, I beg everyone, from investors to consumers to policymakers: Please calm down, take 10 deep breaths and relax. The economic data, taken together, paint a brighter if more complex picture.

When the most recent U.S. jobs report was released, the market wasn’t happy. “Dow plunges nearly 1,000 points after report shows sharp drop in U.S. hiring,” read one headline. When the Dow closed on the day of the report, the index had lost about 2% in value compared with the previous day’s close.

The sell-off has intensified, with global stock markets plunging further after investors had a full weekend to absorb the jobs data. The Dow, the S&P 500 and Nasdaq composite all posted losses on Aug. 5. The Japanese Nikkei also closed 12% lower, a significant drop.

The report that sparked all this turmoil found that the U.S. economy had added a mere 114,000 jobs in July 2024 – lower than the expected........

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