In August, the U.S. economy experienced an increase of 142,000 jobs, while the unemployment rate saw a slight decline to 4.2% from the previous 4.3%, as reported by the Labor Department on Friday. A significant factor that will influence the Federal Reserve’s decision regarding the magnitude of an interest rate reduction to be announced later this month is the observed slowdown in the labor market. The employment figures for August fell short of the anticipated growth of 161,000 jobs.
Additionally, the revised report presents important adjustments for prior months: only 89,000 new jobs were created in July, which is 25,000 less than initially expected. The job growth for June was also revised downward, from 61,000 to 118,000. While the economy continues to generate jobs, it is doing so at a markedly slower rate. Although the unemployment rate remains historically low, it has risen over the past year.
Recent months have shown signs of a weakening labor market. Powell indicated that the Federal Reserve is against any further decline in labor market conditions. CBNC’s “Squawk Box” analyzed these troubling statistics and their potential implications for Vice President Kamala Harris in her electoral contest against Donald Trump.
WATCH:
WATCH:
