US Hiring Slows Further in August Amid Trade and Immigration Worries

Strategic Insights -

The US labor market experienced a slowdown in hiring in August, as the unemployment rate rose to 4.3% from 4.2%. According to the Bureau of Labor Statistics, the economy added only 22,000 jobs in August, down from the 196,000 jobs added on average over the previous three-month period. This marked the first negative employment month since December 2020, ending the second-longest period of employment expansion on record. The number of jobs lost in June was revised down to 13,000, and payroll gains for June and July were revised down by a total of 21,000. The hiring momentum that began the year has been tempered by uncertainty, with signs of a slowdown appearing in the labor market.

Key Takeaways:

  • The US economy added only 22,000 jobs in August, down from the 196,000 jobs added on average over the previous three-month period.
  • The unemployment rate rose to 4.3% from 4.2%, the highest level in nearly four years.
  • August's job report included a downward revision to June, which showed the US economy lost 13,000 jobs that month, the first job loss since the depths of the pandemic in December 2020.
  • The Great American jobs machine has stalled, according to Christopher Rupkey, chief economist at FwdBonds.
  • Payroll gains for June and July were revised down by a total of 21,000.
  • The hiring momentum that began the year has been tempered by uncertainty.
  • The US labor market is growing stagnant, with signs of a slowdown appearing in the labor market.
  • Fewer job openings, softer wage growth, and longer job searches are signs of a slowdown.
  • The jobs market is experiencing a major cooldown, with an average of about 28,000 jobs added in the three months ending in July, down from an average of 196,000 jobs in the previous three-month period.
  • The August jobs report did little to quell fears of a recessionary-esque labor backdrop, with job creation remaining at stall speed, according to Jeff Schulze, head of economic and market strategy at ClearBridge Investments.

Statistics:

  • The unemployment rate rose to 4.3% from 4.2%.
  • The economy added 22,000 jobs in August.
  • June saw a loss of 13,000 jobs, the first job loss since December 2020.
  • Payroll gains for June and July were revised down by a total of 21,000.
  • The economy shed 21,000 jobs over the previous two months.
  • Average job gains in the three months ending in July were 28,000, down from 196,000 in the previous three-month period.
  • July's job gains were revised up to 79,000 from 73,000.

Sources:

  • Bureau of Labor Statistics (BLS)
  • CNN
  • ClearBridge Investments
  • FwdBonds
  • ManpowerGroup
  • USA Today