U.S. economy added 315,000 jobs in August, a 20-month streak in job growth, despite inflation pressures
The August jobs gains were the lowest monthly pick-up so far this year, but the labor market remains an area of strength for the economy, especially as the Federal Reserve raises interest rates to rein in blistering inflation.million jobs lost during the pandemic. Meanwhile, other indicators, such as asuggest a less rosy picture, raising questions on how much longer the hot job market can last.
Employment in healthcare rose by 48,000 jobs. Retail trade and manufacturing also saw significant job gains. Industries that are more sensitive to interest rate hikes, including construction, durable goods production, mortgages and temporary help services, will see a decline in jobs first if the labor market weakens, economists say.“When we stop seeing growth in those industries, that’s when you think the first shoe is beginning to drop. It hasn’t yet,” said Erica Groshen, an economics adviser at Cornell University and the commissioner of the Bureau of Labor Statistics from 2013 to 2017.