Payrolls rose 22,000 in August, less than expected in further sign of hiring slowdown | AI News Digest
In August, U.S. payrolls rose by only 22,000, falling short of the expected 75,000 increase, indicating a slowdown in job creation. The unemployment rate also ticked up to 4.3%, raising concerns about the labor market's health. This report, the first since the firing of former BLS Commissioner Erika McEntarfer, suggests that the Federal Reserve may proceed with an interest rate cut later this month. While hiring was sluggish, average hourly earnings rose by 0.3%, meeting expectations. The health care sector added the most jobs, while federal government payrolls saw a significant decline. Overall, the labor force participation rate increased, but a broader measure of unemployment rose to 8.1%, the highest since October 2021.
