The growth of jobs in the United States sharply in August, while the unemployment rate increased to the highest level in four years by 4.3 percent, confirming that the conditions of labor market were softening and closing the issue to reduce the interest rate from the Federal Reserve this month.
The Ministry of Labor employment report on Friday showed that the economy lost jobs in June for the first time in four and a half years. The growth of jobs stopped, as economists blamed the comprehensive import tariffs of US President Donald Trump and the suppression of immigration that reduced the work group.
The softness in the labor market is mostly on the side of employment. There were more vacancies unemployed people in July for the first time since Covid-19.
Trump’s duties, which strengthened the average tariff rate in the country to the highest level since 1934, have fears of high inflation, prompting the US Central Bank to stop the interest rate reduction cycle. Just as some uncertainty about commercial policy began raising with most of the customs tariffs now, a US Court of Appeal ruled last Friday that many duties were illegal, as they kept companies in a state of flow.
“The warning bell that rang in the labor market a month ago has become a higher voice,” said Olu Sonola, head of US Economic Research at Fitch. “The Federal Reserve is likely to give a priority to the stability of the labor market in delegating inflation, even with the low inflation than two percent. It is difficult to say that the induction uncertainty is not a major driver of this weakness.”
The numbers come at a time when Canada’s work figures have indicated trouble in the labor market. August witnessed that the unemployment rate in Canada reaches 7.1 percent, and the economy was 66,000 jobs.
The Ministry of Labor Statistics Office said that the non -cultivated salary statements in the United States increased by 22,000 jobs only last month after its rise by 79,000 reviews in July.
The economists of Reuters expected that salary statements would rise by 75,000 jobs after they were previously reported from 73,000 in July. Estimates ranged from the lack of jobs added to 144,000 jobs created.
Reviews also showed that salary statements decreased by 13,000 jobs in June, which is the first decrease since December 2020, rather than 14,000, as mentioned last month.
The unemployment rate increased from 4.2 percent in July, partly due to the entry of more people to the workforce.
Some slowdown in the growth of the acute jobs can be linked last month to a seasonal season. The first number of jobs in August tends to show weak bias, as reviews later showed strength. However, the growth of employment has significantly reduced, with an average of 29,000 jobs per month in the past three months, compared to 82000 during the same period in 2024.
The largest part of the added jobs in August in the field of health care, as salary statements in the sector increased 31000. But even this labor market column shows stress because the increase was less than the average monthly profit of 42,000 over the past 12 months.
The employment in the social aid industry increased by 16,000 jobs. Government data this week showed a decrease in health care and social assistance functions in July.
Federal government salaries have decreased by 15,000, and employment in this field has now decreased 97,000 since January. A sharp decrease in October is expected after employees collect the salaries of the semester in salaries in the previous month.
There were business losses in a number of sectors, including wholesale, manufacturing, construction, professional services and commercial services.
“It is a little disappointing job number, but I greatly expect a review,” White House economist Kevin Haysit told CNBC after the release of the recruitment report.
The Federal Reserve Chairman, Jerome Powell, indicated last month that the reduction in prices was possible at the US Central Bank’s policy meeting from September 16 to 17, while recognizing the growing risks of the labor market, but also added that inflation had been a threat. The Federal Reserve has retained the regulation of the interest rate overnight in the range of 4.25 percent to 4.50 percent since December.
US Treasury revenues fell on the data. The dollar fell against the currency basket.
US President Donald Trump Erika Minarker, Commissioner of Labor Statistics Office, launched a report showing the slowdown in July and was much weaker in May and June than previously reported.
Last month, Trump launched Erika Minarker, a delegate of the work statistics office, accusing, without evidence, to manipulate employment data. After that, after sharp declining reviews to the salaries for the month of May and June.
However, economists defended mcentarfer and attributed the reviews to the “birth and death” model, a method used by the work statistics office to try to estimate the number of jobs obtained or lost because of companies that open or close in a specific month.
“We are in the low labor market, with no much employment or shooting. This means the growth of the job that we
Erney Tedishi, director of economics at the Yale University Budget Laboratory, said that the economy is mainly driven by the birth of new companies.
“But this is the most imposed part. It is the most sensitive to review because it is the result of the frank modeling by BLS, rather than something they can wipe.”
Trump nominated EJ Antoni, chief economist at the conservative Think-Trank Heritage Foundation, to replace Mcentarfer. Anthony, who drafted the opinion articles that criticized the office, and even suggested the suspension of the monthly employment report, is largely seen as not qualified by economists through political ideologies.
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