The unemployment rate rose to 3.7% in August

The report published Friday by the Labor Department shows that the American economy created 316,000 jobs last month, compared to 526,000 jobs in July.

According to these figures, August was the 20th consecutive month in which the American economy created more jobs than they lost. The US unemployment rate rose to 3.7% in August from 3.5% in July.

Economists interviewed by Reuters were betting on around 300,000 new jobs created in August.

The report published by the Labor Department on Friday comes after the chairman of the US Federal Reserve (Fed), Jerome Powell, warned that the US economy will need a tightening of monetary policy “for a while” before inflation is under control, a fact which could mean slower growth, a weaker labor market and “some pain” for households and companies.

The fact that the US economy continues to create jobs at a sustained pace could put pressure on the Federal Reserve to adopt a third increase in the benchmark interest rate by 75 basis points at this month’s meeting.

As of July 31, 2022, there were 11.2 million job vacancies in the US, two for every unemployed person.

Economists believe that the resilience of the labor market is due to companies’ rush to hire, after facing difficulties in the last year, in the context of the effects of the pandemic. While legal immigration is slowing down, the number of employees is falling, economists believe.

There is also high demand for employees in service industries, such as restaurants and airlines, among the hardest hit sectors during the pandemic.

Average hourly earnings rose 0.3% in August, after a 0.5% advance in July, so the annual pace of wage growth held this month at 5.2%.

Source: Jurnalul by

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