By Stacy M. Brown, NNPA Newswire Senior National Correspondent
According to the most recent Bureau of Labor Statistics data, the U.S. economy added 142,000 nonfarm payroll jobs in August, less than the 165,000 economists had predicted. While the job growth missed forecasts, the unemployment rate dropped to 4.2% from July’s 4.3%, suggesting continued strength in the labor market under the Biden-Harris administration.
Job growth in August came in higher than July’s revised 89,000, but revisions to June and July figures showed the U.S. economy added 86,000 fewer jobs than initially reported. Despite the adjustments, wage growth continued to increase, with year-over-year wage gains rising to 3.8%, up from 3.6% in July. Monthly wages grew by 0.4%, double the prior month’s 0.2%, offering signs of resilience for American workers amid ongoing inflation concerns.
Some economists, however, are cautious about how these figures will impact the Federal Reserve’s upcoming decision on interest rates. “The overall solid gain in August payrolls, the retreat in the unemployment rate, and the pop in average hourly earnings are not likely enough for Fed officials to start the rate-cutting cycle with a 50 bps reduction on September 18,” Nationwide’s chief economist Kathy Bostjancic noted.
Bostjancic’s remarks reflect the broader debate among economists. Some see the data as a reason for the Fed to pursue a more conservative rate cut of 25 basis points to avoid overheating the economy.
In a statement following the jobs report, President Joe Biden celebrated the continued economic progress under his administration. “Thanks to our work to rescue the economy, nearly 16 million new jobs have been created, wages and incomes are rising faster than prices, businesses are investing in America, and millions of entrepreneurs are opening small businesses—acts of hope and confidence in our economy,” Biden said.
The president also stressed the importance of maintaining these gains as inflation returns to manageable levels. “With inflation back down close to normal levels, it is important to focus on sustaining the historic gains we have made for American workers,” he remarked.
Biden warned against returning to what he described as failed Republican policies, including tax cuts for the wealthy and reductions to critical programs. “The last thing we should do is turn back to the failed trickle-down economics… cutting taxes for the wealthy and large corporations, raising taxes on middle-class families, or cutting Social Security, Medicare, Medicaid, and the Affordable Care Act,” Biden emphasized.
“We’re fighting to expand opportunity, and we’ll keep pushing forward. The American people have shown their resilience, and we’re committed to building an economy that works for everyone,” he insisted.
