The US labour market continued to lose momentum in August, deepening concerns over the stability of the world’s largest economy. Employers added only 22,000 jobs last month, well below expectations, while the unemployment rate edged up from 4.2% to 4.3%, the Labor Department reported.
The figures follow a series of disappointing job reports, including downward revisions to May and June data. On Friday, officials confirmed that the economy actually lost jobs in June the first monthly decline since 2020.
The weak performance has reinforced expectations that the Federal Reserve will move ahead with an interest rate cut at its upcoming meeting. “The warning bell that rang in the labour market a month ago just got louder,” said Olu Sonola, head of US economic research at Fitch Ratings.
President Donald Trump reacted by abruptly firing the head of the Bureau of Labour Statistics, accusing her without evidence of manipulating the data. Economists, however, point to the administration’s tariff hikes, immigration restrictions, and spending cuts as key factors weighing on hiring and growth. The Labour Department noted that the federal government shed 15,000 jobs in August, while manufacturing and construction also posted losses, offsetting modest gains in healthcare.
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