US (Washington Insider Magazine)-According to data issued by the Bureau of Labor Statistics on Friday, hiring in the United States slowed from its rapid pace but remained strong in August, with the economy creating 315,000 jobs and the unemployment rate climbing to 3.7%.
The data comes a week after Fed Chair Jerome Powell, who vowed to battle inflation with interest rate rises “until the job is done,” sparked a stock market sell-off and fueled recession worries.
The Fed has implemented a number of drastic hikes in borrowing costs recently in an effort to reduce nearly unprecedented inflation by weakening the economy and stifling demand. However, the strategy runs the danger of sending the US into a recession.
However, this year’s employment has soared thus far. The strong hiring figures have exceeded forecasts and allayed worries of a significant decline.
According to statistics provided by the Bureau of Labor Statistics last month, U.S. hiring significantly above forecasts in July as the economy added a record-breaking 528,000 jobs and the unemployment rate dropped to 3.5%.
The number of jobs added in July outpaced the already robust hiring seen in the first half of 2022, when the economy added 461,000 jobs per month on average.
Government statistics released this week provided more evidence that the labor market is still robust. According to figures issued by the Bureau of Labor Statistics on Tuesday, job openings increased in July after declining for 3 consecutive months. On the final day of July, there were 11.2 million vacancies, up from 11 million the month before.
According to AnnElizabeth Konkel, a senior economist at Indeed Hiring Lab, the labor market has survived the Fed’s attempts to slow the economy even as the central bank attempts to lower inflation in part by reducing demand for employees and delaying wage increases.
The central bank raised its benchmark interest rate by 0.75% each time it convened in June and July—dramatic increases last seen in 1994.
