The United States created 315,000 jobs in August, yet the unemployment rate rose: Despite increasing interest rates and inflation, the employment data barely exceeds forecasts.
The U.S. economy generated 315,000 jobs in August, which was slightly below projections, and the unemployment rate increased to 3.7%, which is almost pre-recession levels.
The economy has been on a twenty-month run of growth, but with growing employment statistics has come greater inflation.
The economy was anticipated to have created 318,000 jobs in August, which was fewer than the unexpectedly robust addition of 528,000 jobs in July.
The Federal Reserve is worried about the heated labor market as it battles to reign in rising inflation rates.
Fed Chair Jerome Powell Powell has made it plain that reducing inflation is his top objective. He said last week that the Fed must maintain high interest rates “for some time” to slow the growth.
Numerous analysts predict this will result in a reversal of certain interest rates, with investors betting on the amount and timing of the next increase.
In July, the Fed boosted interest rates from near zero in March to a range of 2.25 to 2.5 percent.
The Fed is contemplating either a half-point or three-quarters-point rise at its meeting on September 20-21.
Powell said last week: “Our decision at the September meeting will rely on the totality of the incoming data and the developing outlook.”
The Labor Department revealed last week’s decrease in jobless claims on Thursday, another evidence of a robust labor market. Earlier this week, it was reported that there were two jobs for every jobless individual in July.