Economy adds 315K jobs in August, unemployment ticks up
Job growth slowed slightly in August but remained well above pre-pandemic levels as steady consumer spending powered another strong month of hiring.
The U.S. added 315,000 jobs last month and the unemployment rate rose to 3.7 percent, according to data released Friday by the Labor Department, up from 3.5 percent in August.
Economists expected the U.S. to gain roughly 300,000 jobs last month without the unemployment rate budging, according to consensus estimates. While the unemployment rate rose by 0.2 percentage points, the labor force participation rate also rose by 0.3 percentage points.
Rising unemployment and slowing job gains are rarely good news for an economy. But the August jobs report showed the economy toward ample job growth and lower inflation.
The U.S. has recovered all of the 21 million jobs lost to onset of the pandemic and has already added close to 3 million jobs in 2022 alone. But businesses have still struggled to hire enough workers to meet intense demand from consumers, even after raising wages at rapid rates.
Some economists and policymakers have been concerned that the national labor shortage could be fueling high inflation by forcing businesses boost wages and prices quickly. As the size of the workforce increases, businesses may have an easier time finding workers without having to raise wages at rapid rates. That could also help businesses keep their prices stable and sap momentum from inflation.
Updated at 9:02 a.m.
Source: TEST FEED1
