Job growth stalls: US economy added just 22,000 jobs in August, unemployment at highest in nearly four years
CNN
By Alicia Wallace, CNN
(CNN) — Job growth slowed to a crawl in August, and the unemployment rate rose to its highest level in nearly four years, indicating the US labor market is growing stagnant.
The economy added just 22,000 jobs last month and the unemployment rate rose to 4.3% from 4.2%, according to the Bureau of Labor Statistics.
August’s job report also included a downward revision to June, which showed the US economy lost 13,000 jobs that month. It’s the first negative employment month since December 2020, and it brings to an end what was the second-longest period of employment expansion on record.
“The Great American jobs machine has stalled,” Christopher Rupkey, chief economist at FwdBonds, wrote in commentary issued Friday.
July’s job gains were revised up slightly to 79,000 from 73,000, according to the report.
Stock futures were mixed after the data release. Dow futures were down 60 points, or 0.13%. Meanwhile, S&P 500 futures gained 0.2% and Nasdaq 100 futures rose 0.6%. Yields on the 2-year, 10-year and 30-year Treasury note swiftly dropped as investors flocked to bonds, signaling expectations for a weakening economy.
Warning signs have been flashing for months that the job market has been losing steam. That became starkly clearer in July, when weak job growth and larger-than-typical downward revisions spurred the unprecedented firing of BLS Commissioner Erika McEntarfer by President Donald Trump who claimed, without evidence, that the disappointing data must have been “rigged.”
Other labor market data released so far this week further confirmed that the labor market has cooled down considerably: Private-sector hiring slowed sharply; initial jobless claims hit a nearly three-month high; layoff announcements picked up; and, for the first time in four years, the number of available jobs is lower than the number of job seekers.
The low-hire, low-fire environment is leaving workers and job hunters with few opportunities. A low-churn labor market is vulnerable to shocks, economists warn.
Economists were expecting that the economy added 76,500 jobs last month and that the unemployment rate rose to 4.3%, according to FactSet.
This story is developing and will be updated.
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CNN’s John Towfighi contributed reporting.
