US Labor Market Adds 142,000 Jobs in August as Unemployment Rate Falls to 4.2%
In August 2024, the US job market added 142,000 jobs and the unemployment rate fell to 4.2%. Get the latest on employment trends and wage growth
In August, the US job market showed weaker-than-anticipated growth, although the unemployment rate experienced a slight decrease.
Recent data from the Bureau of Labor Statistics revealed that the US economy added 142,000 nonfarm payroll jobs in August. This figure fell short of the 165,000 jobs that analysts had predicted. Despite this shortfall, the unemployment rate improved to 4.2%, down from 4.3% in July. August's job growth was higher than the revised 89,000 jobs added in July. However, revisions to previous months indicated that the economy added 86,000 fewer jobs in June and July than initially reported.
Wage growth, a key indicator of inflation, increased to 3.8% year-over-year in August, up from 3.6% in July. On a monthly basis, wages rose by 0.4%, surpassing the 0.2% increase recorded in July. The labor force participation rate remained steady at 62.7%.
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These employment figures are likely to influence discussions regarding potential adjustments to interest rates by the Federal Reserve. Federal Reserve Chair Jerome Powell has noted that the recent cooling in the labor market is significant, but emphasized that the Fed does not anticipate further cooling in job conditions.
Overall, the August data, combined with recent trends, has led to speculation about possible changes in interest rates. Market observers are considering a 43% likelihood that the Federal Reserve might opt for a 50 basis point rate cut by the end of its upcoming meeting.
Also Read: Job Openings in the U.S. Hit Lowest Point Since 2021, Signaling a Slowing Job Market
