US data: Unemployment rises despite more-than-expected jobs ‎in August

Data published by the US Department of Labor today, Friday, showed that employers employed slightly more than expected during the month of August, despite the unemployment rate rising to 3.7%.

According to “Reuters”, the closely watched ministry report showed that the number of non-farm payrolls increased by 315,000 jobs last month. July data was slightly revised to show 526 thousand job gains, not 528,000 as in previous data.

This represents job growth for the 20th consecutive month

Experts polled by Reuters had expected jobs to rise by 300,000. Estimates ranged from 75,000 to 450,000. At the same time, the unemployment rate soared to 3.7%, compared to 3.5% in July, a rate that had not been recorded since the pandemic.

The jobs report comes a week after Federal Reserve Chairman Jerome Powell warned Americans of a painful period ahead of slowing economic growth and a possible rise in unemployment, while the US Central Bank is sharply tightening monetary policy to curb inflation.

The strong job growth last month was further evidence that the economy continues to grow even as GDP contracted in the first half of the year, and was another indication that the Federal Reserve still needs to revive the labor market.

The Federal Reserve raised interest rates twice by 75 basis points in June and July. Since March, the bank has raised the interest rate from nearly zero to the current range between 2.25 percent to 2.50 percent.

Consumer price data for August, which is expected to be published in the middle of the month, will be a major factor in determining the new interest rate.