In August, the U.S. labor market showed further signs of weakening, raising concerns about economic stability. According to the Labor Department, employers added only 22,000 jobs during the month, falling short of anticipated numbers, while the unemployment rate rose slightly from 4.2% to 4.3%. These figures follow a series of disappointing job market data, including a revision that revealed prior employment figures for May and June were significantly lower than originally reported.
The latest revisions indicate that the U.S. experienced a job loss in June—the first such decline since 2020. This trend has prompted investors to speculate that the Federal Reserve is likely to reduce interest rates at its upcoming meeting in response to the ongoing labor market deterioration.
Olu Sonola, head of U.S. economic research for Fitch Ratings, remarked that the labor market warning signals have intensified over the past month. In light of the economic indicators, U.S. President Donald Trump dismissed the head of the Bureau of Labor Statistics, alleging, without evidence, that she manipulated data to portray his administration unfavorably.
Experts have indicated that current job market difficulties may be linked to the administration’s significant changes in tariff and immigration policies. Economists have raised concerns that these policies could contribute to increased costs and uncertainty for businesses. Additionally, federal government job cuts have contributed to the downturn, with the Labor Department reporting a reduction of 15,000 federal positions last month. Employment declines were also observed in the manufacturing and construction sectors, which contrasted with gains reported in health care.
Source: https://www.bbc.com/news/articles/cn0xe5dvp47o?at_medium=RSS&at_campaign=rss