U.S. Economy Adds 142,000 Jobs; Unemployment Declines Slightly

There’s more than meets the eye with regard to this city of contrasts – its rich culture of diversity. But I must mention an event which took place recently: this was no ordinary concert – instead it featured music by some of its finest talents like Leonard Bernstein or even Elton John (yes I remember watching those guys! ). So it would appear from that this would make an excellent place for young and upcoming artists alike who wish to join forces and bring something fresh, vibrant, new, unexpected into this already busy metropolis: its was built and expanded until all those involved could fit inside one last chamber before heading off another, this one being an even greater one: you. On Friday, the Bureau of Labor Statistics reported that the American economy added 142,000 jobs in August while unemployment dropped slightly to 4.2% – figures which do little to ease concerns of an otherwise robust labor market.Unemployment remains low but has steadily been increasing over this year following an employment-boosting Covid pandemic recovery effort that resulted in massive job growth across America. Economic analysts were closely scrutinizing the monthly jobs report this time due to expectations that the Federal Reserve may cut interest rates as part of an economic stimulation effort. Economics were front and center during both Vice President Kamala Harris’ and former President Donald Trump’s presidential campaigns. Since Friday will mark only two more monthly jobs reports before Election Day, economists had predicted an optimistic report, hoping for 161,000 additional positions created since January 1. June and July jobs figures were both revised downward, leading to speculation that recent employment gains represent payrolls growth rather than actual job creation – though their latest revision may make this unlikely. Markets responded negatively, sending stock futures downward while U.S. Treasury yields declined as investors sought out safer assets with reduced risk. Mark Hamrick, senior economic analyst of Bankrate said in his note following Friday’s release. While inflation remains the chief worry among Americans, its effects are now competing for their attention with job market issues and inconsistent economic signals from government officials. Recently, two measures of manufacturing disappointed, fuelling worries that the economy may be slowing faster than anticipated. On Wednesday, however, the Bureau of Labor Statistics reported job openings have continued their rapid decrease even as pre-pandemic levels remain higher than before the pandemic outbreak began. However, recent evidence uncovered by this survey indicates that hiring rates among professional and business services workers – who typically command higher wages – have declined to levels not seen since 2009. Yet layoffs remain relatively subdued despite an uptick last month; similarly, filings for unemployment remain stable. Businesses appear to be “laying off workers like it’s an expansion and hiring like it’s a recession”, said Dario Perkins from TS Lombard financial firm on X Wednesday. American households have seen most of their pandemic-era cash accumulate over time spend down, yet borrowing remains constrained due to high interest rate environments. However, even as inflation rates have returned closer to their 2-percent goal set by the Federal Reserve, consumers continue to experience surging prices that has resulted in four years of inflationary increases. Even amid these headwinds, much has been made this summer of the U.S. economy having achieved a “soft landing”, featuring relatively low unemployment and inflation; stocks also continue to hold near all-time highs despite some recent market turbulence. Mark Zandi, chief economist of Moody’s Analytics group, told NBC News that, provided unemployment stays at its current levels, an even keel landing can occur; but cautioned this positive picture could quickly become dismal if conditions worsen further. “All it would take for the current story to change is for companies to start pulling back or even layoff workers,” Zandi stated, adding, “the labor market appears healthy but fragile”. Furthermore, current unemployment statistics imply over 7 million American are unemployed and searching for work. Cassandra Kelly, 38 and from New Jersey with two young children. According to NBC News she’s been job searching for over one year despite possessing operational specialist and communications/social media experience; so far getting by on settlement payments from landlords as settlement payments from her partner as financial support as well as contract work from time-to-time. But none of it has been enough to cover her expenses. Kelly noted that some full-time roles available to her pay as little as $45,000 — hardly sufficient for an apartment in New York City area and without benefits that support medical needs for herself and family members. “Even when I agree to accept $45,000 or $50,000 as compensation, the work required for that sum seems unfair and creates feelings of resentment within myself and those around me,” she stated. “There have been moments I wanted to give up but chose to stick it out instead.” “With an anticipated interest-rate cut coming this month from the Federal Reserve, economists hope it will ease growth and loosen financial conditions, leading to reduced borrowing costs across auto loans and credit cards alike. Mortgage rates could also see decreases; although not directly under Fed control. Any financial relief provided won’t take immediate effect since current rate of 5.5% already seems high enough; Zandi said such action won’t create “game-changing events”, meaning it will take time for economies and people to adapt to any reductions that take effect after September or in subsequent months such as November/December/etc.