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US hiring slows in August as employers add 211,000 less jobs than previous month
By Christopher Rugaber - Sep 02, 2022, 09:50 AM ET
Last Updated - Jul 18, 2023, 04:29 PM EDT
The Federal Reserve may welcome smaller August gain amid rapid monetary tightening to cool hiring and wage growth that have been spurring inflation
America's employers slowed their hiring in August in the
face of rising interest rates, high inflation and sluggish consumer spending
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was down from 526,000 in July and below the average gain of the previous
three months. The unemployment rate rose to 3.7%, from a half-century low of
3.5% in July, as more Americans came off the sidelines to look for jobs.
Even though the job gain declined from July, the report
still pointed to a resilient labor market and an economy that is not near
recession. The number of people looking for work jumped last month, which
boosted the unemployment rate because not all of them found jobs immediately.
The influx of job seekers should help employers fill a near-record number of
openings in the coming months.
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text-align:center;line-height:normal">Source:
U.S. Bureau of Labor Statistics
The smaller August gain will likely be welcomed by the
Federal Reserve. The Fed is rapidly raising interest
rates to try to cool hiring and wage growth, which have been consistently
strong. Businesses typically pass the cost of higher wages on to their
customers through higher prices, thereby fueling inflation.
Fed officials hope that by raising
borrowing costs across the economy, they can reduce inflation from a
near-40-year high. Some economists fear, though, that the Fed is tightening
credit so aggressively that it will eventually tip the economy into recession.
(Rugaber
is AP Economics Writer. AP Writer Josh Boak contributed to this report.)
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soars over 10% after expected Fed action
stock indices post best gains in July since November 2020
stocks rally after economy contracts by 0.9%
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inflation jumps to 9.1%, highest rate since 1981 as consumer pressures
intensify
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