U.S. unemployment rate ticks up to 4.3% amid signs of broader economic slowdown
The U.S. unemployment rate rose to 4.3% in July and hiring slowed, adding to signs of a broader downturn in what has been a solid U.S. economy.
The U.S. unemployment rate rose to 4.3% in July and hiring slowed, adding to signs of a broader downturn in what has been a solid U.S. economy.
The Bureau of Labor Statistics reported Friday that the U.S. added 114,000 jobs, down from 206,000 in June and well short of expectations. Economists were expecting the unemployment rate to have been unchanged from June's 4.1% reading.
The latest report will likely add to worries from some economists that the Federal Reserve has waited too long to cut interest rates in its bid to stamp out inflation. Earlier this week, Fed Chair Jay Powell indicated the first rate cut of the post-pandemic period would come in September, even as many economists flagged signs of a rapidly cooling labor market.
Friday's report adds further evidence to those concerns.
A worker moves packages at an Amazon same-day delivery fulfillment center in Bronx, N.Y., on July 16, 2024. Stephanie Keith / Bloomberg via Getty Images"Oh dear, has the Fed made a policy mistake?" wrote Seema Shah, chief global strategist at Principal Asset Management based in the UK, in a note to clients following the jobs report's release. "The labour market’s slowdown is now materialising with more clarity."
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