Employers added 187,000 jobs in August
The US economy added 187,000 jobs in August, a sign that the national labor market remains robust in the face of interest rate hikes by the Federal Reserve.
Employers continued to hire at a rapid clip, with the August figures marking an increase from the 157,000 jobs added the previous month and the unemployment rate remaining low by historical standards, despite jumping from 3.5% to 3.8%.
Still, the pace of hiring has slowed since earlier this year and with inflation having also ramped down – from 9.1% last year to 3.2% at present – many observers expect the Fed to hit pause on rate increases in its next decision a few weeks from now.
Earlier this week, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS report) showed that job openings in the US fell by 338,000 in July to just over 8.8 million, with the number of Americans quitting their jobs slipping by 253,000 and the frequency of layoffs remaining largely unchanged.
That figure for job openings was the lowest for nearly two and a half years, a further indication that the economy is slowing enough for the Fed to leave its key rate unchanged when it meets on September 19-20.
To date, the central bank has hiked rates 11 times since last year in a bid to tackle rampant inflation – but hopes are rising that it may be able to avoid a so-called “hard landing” by slowing hiring and consumer activity enough through rate hikes without triggering a painful recession.
