U.S. job growth slows in August, unemployment remains stable
(MENAFN) In August, the U.S. Economy experienced a slower-than-anticipated increase in job growth, which may influence the Federal Reserve's upcoming decision on interest rates. According to data from the labor Department, non-agricultural sectors added 142,000 jobs last month, falling short of the forecasted 164,000 jobs. Additionally, the number of jobs added in July was revised downward to 89,000, reflecting a more modest growth than initially reported. The private non-farm sector also saw a smaller increase, with 118,000 jobs added in August compared to the expected 139,000. July’s figures for this sector were similarly adjusted downward to 74,000 jobs.
Despite these lower-than-expected job gains, the data does not suggest a significant worsening of labor market conditions. The unemployment rate in the United States, which is the world's largest economy, decreased to 4.2 percent in August, matching expectations and down from 4.3 percent in July. This stable unemployment rate indicates that the labor market remains resilient, even amidst a slowdown in job growth. As a result, the Federal Reserve may not see the need for a substantial interest rate cut at its upcoming meeting, given the overall stability in employment and unemployment figures.
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