August jobs report in focus as election heats up, Fed heads for rate cut
The U.S. economy added 142,000 jobs in August and the unemployment rate ticked down slightly to 4.2%, the Bureau of Labor Statistics said Friday, fresh data that does little to assuage concerns about a slowdown in an otherwise solid labor market.
The U.S. economy added 142,000 jobs in August and the unemployment rate ticked down slightly to 4.2%, the Bureau of Labor Statistics said Friday, fresh data that does little to assuage concerns about a slowdown in an otherwise solid labor market.
Economists had expected a slightly stronger jobs report, looking for 161,000 added jobs. And while the unemployment rate hardly budged, Friday's report also included significant downward revisions to June and July jobs numbers.
Unemployment remains low but has been on an upward trajectory for most of this year following a jobs boom the U.S. experienced as part of its broader economic recovery following the Covid pandemic.
“The chief worry among Americans has been high prices, the result of inflation,” Mark Hamrick, senior economic analyst at Bankrate, said in a note following Friday’s release. “The state of the job market is now competing for their attention.”
The monthly jobs report — always closely watched by economists and analysts — was under even more intense scrutiny due to expectations that the Federal Reserve will soon cut interest rates in an effort to provide a boost to economic growth. Economic issues are also at the forefront of the presidential campaigns of Vice President Kamala Harris and former President Donald Trump. After Friday, there will be just two more monthly jobs reports before Election Day.
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