• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. US & Canada
  4. US employment slows in August, unemployment rises
US & Canada

US employment slows in August, unemployment rises

  • By Al Mayadeen English
  • Source: Agencies
  • 2 Sep 2022 19:02

American employers curtailed hiring in August following an unexpected surge the previous month, and the unemployment rate nudged up.

  • A hiring sign is displayed at a restaurant in Highland Park, Ill. The labor market continues to shine despite weakening elements of the US economy.(Nam Y. Huh / Associated Press)
    A hiring sign is displayed at a restaurant in Highland Park, Ill. (Nam Y. Huh / Associated Press)

US firms reduced hiring in August after an unexpected spike the previous month, and the unemployment rate nudged up, providing the central bank with some relief that its inflation-fighting measures are working, according to official data released Friday. 

The Federal Reserve is closely monitoring the progress of the hot job market, looking for indications of relaxation as it attempts to chill the economy with hefty interest rate hikes in order to tamp down inflation, which has reached a 40-year high.

While salaries continued to grow, the unemployment rate rose as more employees entered the labor force, a favorable development that may allow the Fed to settle for a modest move later this month following two consecutive major rate hikes.

Read next: 'We're hiring': US faces unemployment, no one wants to work

Despite the slowing rate, job gains have pushed employment over the pre-pandemic level, according to the Labor Department's carefully monitored monthly report.

The US economy added 315,000 jobs last month, which was in line with economists' expectations following 526,000 hires in July, according to the report. It added that the unemployment rate has risen to 3.7 percent after falling to 3.5 percent the previous month.

However, wages continued to climb in August, as average hourly earnings increased another 10 cents, or 0.3 percent, to $32.36. Over the past 12 months, worker pay has increased by 5.2 percent.

#Inflation is hitting the #US hard as prices all around the world are peaking, but minority #Americans are suffering the most from the harsh economic situation. pic.twitter.com/b30b9oIo0D

— Al Mayadeen English (@MayadeenEnglish) August 10, 2022

Surging prices 

Soaring prices, exacerbated by high energy prices as a result of the Ukraine war, as well as ongoing supply chain issues and Covid-lockdowns in China, have prompted the Fed to raise the benchmark borrowing rate four times this year, including two large 0.75 percentage point increases in June and July.

Read next: US consumer prices witness biggest jump in 40 years

However, the latest data "may tip the scale towards a 50-basis point rate hike" at the September 20-21 meeting, said Rubeela Farooqi of High-Frequency Economics. However, the next report on consumer price inflation also will be a key factor. 

She added, "these data are not going to change the Fed's view that policy needs to move to a restrictive stance over coming months."

In July, there were more than 11 million job openings, or two for every job seeker. 

US recession 

The United States' GDP declined in the first two quarters of 2022, which is often seen as an indication of a recession, but the strong job market defies that description.

Companies have been facing labor scarcity for months, encouraging them to offer greater wages, and driving up prices. There are also indications that businesses are "hoarding" people, or retaining seasonal workers for fear of not being able to replace them later.

The majority of #Americans are worried about paying for housing in the coming year, as inflation drives prices through the roof. The #US is suffering from the repercussions of the western-led sanctions on #Russia. pic.twitter.com/BNRYF6nx9i

— Al Mayadeen English (@MayadeenEnglish) August 17, 2022

Fed officials have stated repeatedly that they will continue to raise interest rates in order to chill the economy, even if monthly data show some signs of improvement.

Last week, Fed Chair Jerome Powell emphasized this point at a conference in Jackson Hole, Wyoming, warning of "some pain to households and businesses" as well as a "softer labor market."

  • United States
  • US recession
  • US inflation
  • Unemployment

Trending Now

All
home's gas provider or brand of appliance.Ida Marie Odgaard / Ritzau Scanpix/AFP-Getty Images

California warns of ‘shockingly high’ gas bills as gas prices soar

Most Read

Buzzfeed CEO Jonah Peretti (Getty Images)

Buzzfeed to use AI to write its articles after firing 180 employees

  • US & Canada
  • 27 Jan
Twitter headquarters is shown in San Francisco on Nov. 4, 2022 (AP Photo/Jeff Chiu, File)

FBI created dashboard to mislabel Twitter users as Russian bots

  • US & Canada
  • 27 Jan
Chief of Russian Radiation, Chemical and Biological Protection Force Igor Kirillov (TASS)

20,000 docs obtained by Russia expose US biowarfare program in Ukraine

  • Europe
  • 30 Jan
The Utter Disconnect between 'Realities'

The Utter Disconnect between 'Realities'

  • Analysis
  • 30 Jan

Read this

All
War criminal Jens Stoltenberg nominated for Nobel peace prize
Europe

NATO chief Jens Stoltenberg nominated for Nobel peace prize

  • Today
Rep. George Santos in Washington. (Getty Images)
US & Canada

FBI investigating Santos for stealing $3,000 from homeless veteran

  • Today
Lavrov: Algeria main contender to join BRICS
Europe

Lavrov: Algeria main contender to join BRICS

  • 1 Feb
Secretary-General of the Islamic Jihad Movement, Ziad Al-Nakhalah
Palestine

Exclusive: PIJ delegation, led by Al-Nakhalah to visit Cairo Thursday

  • 1 Feb
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • About Us
  • Contact Us
  • Authors
Android
iOS