US Unemployment Reaches a New High Since 2021 as Job Growth Comes to a Standstill
The US economy witnessed a disappointing addition of merely 22,000 jobs in August, a figure significantly lower than the anticipated 75,000. Concurrently, the unemployment rate escalated to 4.3% – a record high since October 2021, as per the Bureau of Labor Statistics report released on Friday.
The data reveals a concerning trend, with job growth averaging a mere 74,750 per month through August. This is the slowest pace for this timeframe since 2010. The unemployment rate for the Black community rose to 7.5%, marking a nearly four-year high. Furthermore, the manufacturing sector experienced a decline for the fourth consecutive month, losing 78,000 positions this year.
Interestingly, the weak report led to an initial rise in stock markets. Investors are now expecting the Federal Reserve to cut interest rates in September, with an 87.8% probability of a quarter-point cut at the Fed’s September 16-17 meeting.
The labor market’s weakness is occurring in the midst of ongoing trade tensions and economic uncertainty, largely attributed to the policies of the Trump administration.
Source: CNN