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Unemployment rate increased in August

In August, there were fewer people in the United States who found work, which is an indication that the job market may finally be slowing down along with the rest of the economy.

Employers created 351,000 positions, which is a decrease from the approximately 528,000 jobs that were added the previous month and is in line with the predictions of economists. As a result of an increase in the number of people who joined the labor market and were thus classed as jobless, the unemployment rate rose from 3.5% to 3.7%.

“The August jobs report came in significantly lower than the July report. However, the economy is still adding jobs at a rate higher than the long-term average, and the job total is now 240,000 higher than the pre-pandemic level,” Lisa Sturtevant, chief economist at Bright MLS, said in a note.

“The Fed had been hoping to see a slower pace of job growth after the very strong July jobs report. The downtick in employment growth in August may be a sign that the Federal Reserve’s policies are starting to have an impact,” she added.

In an effort to combat the skyrocketing cost of living, the Federal Reserve has been steadily increasing interest rates, which has had a negative impact on the job market.

The hiring market has been one of the few bright spots in an otherwise sluggish economy. Despite the fact that the government thinks the economy shrank in the first six months of this year, which is an informal definition of a recession, companies have created an average of 440,000 jobs per month over the previous three months, which is a blockbuster amount.

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