US EditionStalling Jobs Growth May Be Just What the Market Needs
The U.S. economy added only 22,000 jobs in August, with manufacturing down 12,000 and unemployment rising to 4.3%, signaling a potential jobs recession, experts say.
- On Friday, the U.S. Labor Department's Bureau of Labor Statistics reported the economy added just 22,000 payrolls, while the jobless rate ticked up to 4.3%.
- Supply constraints such as falling foreign-born workers and higher tariffs have reduced available workers due to immigration restrictions and increased costs from tariffs and trade policy.
- BLS revisions revealed June lost 13,000 jobs and trimmed June–July data by 21,000, while the health care sector added 31,000 jobs as manufacturing and wholesale trade posted losses.
- Investors shifted expectations, now betting the Federal Reserve will cut rates by 25 basis points later this month, with a 10% chance of a larger 50-basis-point cut, CME FedWatch tool shows.
- Analysts warned that the combination of slowing hires and rising prices could signal stagflation, with Gary Clyde Hufbauer saying, `I have long forecast an economic slowdown in this fall or winter. This seems to be the first sign`, while Jerome Powell called it `a challenging situation`.
17 Articles
17 Articles
The Jobs Slump Is Here: What it Means for the Stock Market and the Fed @themotleyfool #stocks $^GSPC $XHB $OPEN
Key PointsAfter a brief pop on Friday, stock prices fell in response to the weak employment report.The report makes a rate cut from the Fed more likely later this month.A recession is also becoming an increased risk.These 10 stocks could mint the next wave of millionaires › Several months ago, stocks briefly crashed over concerns about a trade war and a slowing economy. Now, the S&P 500 (SNPINDEX: ^GSPC) is trading at an all-time high even as re…
Economic Watch: U.S. jobs report points to cooling labor market, strengthens case for Fed rate cut
WASHINGTON, Sept. 8 (Xinhua) -- The U.S. economy added fewer jobs than expected in August, underscoring signs of a cooling labor market and bolstering expectations of a Federal Reserve rate cut later this month. Read full story
Peso jumps to one-month high as dollar struggles after weak jobs data - BusinessWorld Online
THE PESO jumped to an over one-month high against the dollar on Monday as weak US jobs data boosted hopes of a rate cut by the US Federal Reserve next week. The local unit closed at P56.69 per dollar, strengthening by 22.5 centavos from its P56.915 finish on Friday, Bankers Association of the Philippines data showed. This was the peso’s best finish in more than a month or since it ended at P56.65 on July 24. The peso opened Monday’s session stro…
Why the US job market is so weak, in 3 charts
Kim Kyung Hoon/ReutersEconomists see a handful of reasons the job market has been so weak in recent months.Hiring has largely been held back by factors like tariffs and stricter immigration policies.The labor market badly missed expectations in August, and data have been lackluster since May.The job market is weakening. That was clearly illustrated in in the dismal August jobs report, which badly missed expectations for hiring while the jobless …
Stalling Jobs Growth May Be Just What the Market Needs
Friday marked the Bureau of Labor Statistics’ first monthly jobs report since President Donald Trump said July’s update was “a total scam” and “rigged” against him, contributing to his decision to fire the bureau’s commissioner. New messenger. Same message. The latest report showed the US job market is stalling. The Federal Reserve saw the same message, increasing the likelihood of an interest-rate cut. Hope in Strange Places The economy added …
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