US Jobs Report Reveals Disappointing 22K Gain, Fuelling Speculation of Fed Rate Cut
The US economy witnessed a meager addition of just 22,000 jobs in August, a figure significantly below the anticipated 76,500. This represents one of the weakest monthly gains since the commencement of the pandemic recovery. Consequently, the unemployment rate escalated to 4.3%, its peak level since 2021, impacting 7.4 million Americans.
The underwhelming data has fueled speculation regarding potential Federal Reserve interest rate cuts. Current market trends suggest an 87.8% likelihood of a quarter-point reduction at the forthcoming September 16-17 meeting. The youth unemployment rate has been particularly hard hit, surging to 10.5% for workers aged 16-24. Meanwhile, recent college graduates are grappling with a 9.3% jobless rate.
Manufacturing jobs have suffered a decline for the fourth consecutive month, shedding 78,000 positions this year. White House economic advisor, Kevin Hassett, referred to the figures as “a little bit disappointing“, but anticipates revisions. The lackluster data has amplified concerns about an economic slowdown, while bolstering arguments in favor of monetary policy easing.
Source: CNN Business