Job Creation In US Weakens -- Report

2025-09-05 03:05:29

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, Sept 5 (KUNA) -- Job creation sputtered in August, adding to recent signs of labor market weakening and likely keeping the Federal Reserve on track for a widely anticipated interest rate cut later this month, according to the Department of Labor (Bureau of Labor Statistics).
Nonfarm payrolls increased by just 22,000 for the month, while the unemployment rate rose to 4.3%, according to a Bureau of Labor Statistics report Friday.
Economists surveyed by Dow Jones had been looking for payrolls to rise by 75,000.
The report showed a marked slowdown from the July increase of 79,000, which was revised up by 6,000. Revisions also showed a net loss of 13,000 in June after the prior estimate was lowered by 27,000.
While the pace of hiring was slow, average hourly earnings increased 0.3% for the month, meeting the estimate, though the annual gain of 3.7% was slightly below the forecast for 3.8%.
The report comes as markets widely expect the Fed to lower its benchmark interest rate by a quarter percentage point when it releases its next decision Sept. 17. Fed Chair Jerome Powell and his fellow policymakers also have been under heavy criticism from the president as they have been on hold since last cutting in December 2024. (end)
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