New Jobs Report Opens Door to Rate Cut
U.S. job growth slowed in August and unemployment rose to 4.3%, boosting expectations of a Fed rate cut that may ease mortgage rates for homebuyers.
WASHINGTON – U.S. job growth weakened sharply in August while the unemployment rate increased to nearly a four-year high of 4.3%, confirming that labor market conditions were softening and sealing the case for an interest rate cut from the Federal Reserve this month.
Nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls would rise by 75,000 positions after a previously reported gain of 73,000 in July. Estimates ranged from no jobs added to 144,000 positions created.
Revisions also showed payrolls declined by 13,000 jobs in June, the first drop since December 2020, rather than rising by 14,000, as had been reported last month.
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