The U.S. economy added 142,000 jobs in August, which is up from the 114,000 added jobs in July, which had marked one of the worst months for hiring in recent years, according to new employment data released Friday by the Bureau of Labor Statistics.
Meanwhile, the unemployment rate ticked down to 4.2% in August after hitting 4.3% in July, the highest it had been since October 2021. In historical terms, a 4.2% unemployment rate is low, but it comes after a period of near-record-low unemployment. The unemployment rate bottomed at 3.4% in 2023.
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The U.S. has had a solid year of job gains. In the last decade, the U.S. averaged about 166,000 new jobs per month. In the last 12 months, the U.S. has averaged 223,000 new jobs per month, bringing the total number of U.S. non-farm jobs to 159.1 million.
Friday’s job report was expected to play a key role in determining whether the Federal Reserve will cut interest rates later this month. By all indications, it is not a matter of if federal interest rates are coming, and more of a question of how much. Back-to-back months of slower job growth coupled with a lower inflation rate are both indicators that interest rates could come down from their current 23-year high.
Average hourly wages increased 14 cents in August to $35.21. Workers are making an average of $1.30 an hour more than a year ago. Average weekly wages were $1,207 in August, up from $1,168 a year ago. The 3.5% increase in wages is slightly outpacing inflation. As of July, the consumer price index was up 2.9% compared to a year earlier.
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Editor-in-chief of WorkingNation and host of the “Work in Progress” podcast Ramona Schindelheim joined Scripps News to discuss the newest jobs report. Watch the video above for more.