US Job Growth Slows in August, Unemployment Rises to Highest Since 2021
By Lukman Babatope
The American economy suffered a sharp hiring slowdown in August, raising fresh concerns about the strength of the labour market and the outlook for growth.
Figures released by the Department of Labour on Friday showed that the country added only 22,000 jobs in August, a significant drop from July’s 79,000. At the same time, the unemployment rate climbed to 4.3%, its highest level since 2021.
Revisions to earlier figures also painted a gloomier picture, with June’s numbers adjusted to show a loss of 13,000 jobs, the first monthly decline since 2020.
Health care was the only major bright spot, adding 31,000 jobs, while government employment shrank by 15,000 and manufacturing lost 12,000. Over the past year, manufacturing alone has shed 78,000 jobs.
Economists say the prolonged weakness will likely push the Federal Reserve to begin cutting interest rates at its policy meeting later this month.
“The fourth month of sub-par job performance signals a dramatic stall in hiring and fully supports rate cuts at the next meeting,” said Nationwide’s chief economist Kathy Bostjancic.
With businesses cutting back and uncertainty mounting, experts warn the “no-hiring economy” could soon slide into a “layoff economy,” raising fears of a potential recession.
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