The US added 142,000 jobs in August and the unemployment rate ticked down to 4.2 percent, according to data released Friday by the Labor Department, assuaging concerns of a wider economic downturn even as the labor market cools.
The August job gain fell short of economists’ forecasts of 161,000 jobs, although it exceeded the 114,000 jobs added in July and matched unemployment expectations. The report ultimately contained neither a notable downturn nor acceleration that threatened to catch the Fed off-guard as it prepares to reduce interest rates by at least a quarter point amid concerns the agency is behind the curve on cuts as hiring and job gains slow.
“Slowing, but steady. That’s the message from the August employment report, confirming other recent activity data that shows a mixed picture for the economy,” Manhattan Institute scholar Dan Katz wrote in a commentary. “The unemployment rate moved down modestly to 4.2 percent, suggesting a degree of underlying stability that is at odds with fears of an impending recession.”
The new report was highly anticipated as the Federal Reserve prepares to reduce interest rates by at least a quarter point amid concerns the agency is behind the curve on cuts as hiring and job gains slow.
US adds 142K jobs in August, with Fed poised to cut rates (yahoo.com)