August 2022 jobs report:

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Nonfarm payrolls rose briskly in August amid a further slowing economy, as the unemployment rate ticked higher as more workers returned to work, the Bureau of Labor Statistics reported Friday.

The economy added 315,000 jobs this month, just below the Dow Jones estimate of 318,000. The unemployment rate rose to 3.7%, two-tenths of a percentage point higher than expected, largely due to rising employment rates. A broader measure of unemployment, including discouraged workers and those in part-time employment for economic reasons, rose from 6.7% to 7%.

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Wages continued to rise, albeit slightly less than expected. Average hourly wages are up 0.3% this month and 5.2% compared to a year ago, both 0.1 percentage points lower than estimates.

Professional and business services led with 68,000 pay increases, followed by healthcare with 48,000 and retail with 44,000. Leisure and hospitality, a leading sector in job recovery during the pandemic, rose just 31,000 in the past month, from an average of 90,000 in the previous seven months of 2022.

The manufacturing industry grew by 22,000, financial activities gained 17,000 and wholesale increased by 15,000.

The employment numbers pose a dilemma for a Federal Reserve trying to control inflation.

“This is a unique period, where we still have a relatively tight labor market, where there is still job growth, but companies have started announcing layoffs, some companies have announced layoffs,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “This could very likely be a recession if you don’t see the kind of job market carnage that you see in most recessions.”

Those wage and wage increases came amid rising inflation and concerns about a slowing economy that saw negative GDP figures for the first two quarters of the year, which are generally regarded as a telltale sign of recession.

Inflation is nearing its fastest pace in more than 40 years as a combination of a supply/demand imbalance, massive stimulus from the Fed and Congress, and the war in Ukraine, which has skyrocketed the cost of living.

The Fed has combated the inflation problem with a series of rate hikes totaling 2.25 percentage points that are expected to continue next year. In recent days, leading central bank figures have warned that they have no plans to reverse their policy-tightening measures and expect that even if they stop hiking, interest rates will remain high “for some time.”

A key channel the Fed is looking for policy impact is the job market. In addition to robust hiring, there are more job openings than available workers by a margin of nearly 2 to 1, putting pressure on wages and creating a feedback loop that drives up prices not only for gas and groceries, but also for lodging costs. and a variety of other editions.

This is the latest news. Come back here for updates.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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