U.S. hiring rebounds slightly and unemployment rate dips in sign of still-slowing job market

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Hiring by America’s employers picked up a bit in August from July’s sluggish pace, and the unemployment rate dipped for the first time since March in a sign that the job market may be cooling but remains sturdy.

Employers added 142,000 jobs last month, up from just 89,000 in July, the Labour Department said Friday. The unemployment rate ticked down to 4.2 per cent from 4.3 per cent in July, which had been the highest level in nearly three years.

In a speech last month, Chair Jerome Powell suggested that the Fed’s policy-makers have all but tamed inflation through high interest rates and don’t want to see the job market weaken further. The central bank is trying to achieve a “soft landing,” in which it succeeds in driving inflation down from a 9.1 per cent peak in 2022 to its target level without causing a recession.

A slower pace of hiring is often a precursor to layoffs — one reason why the Fed’s policy-makers are now more focused on sustaining the health of the job market than on continuing to fight inflation. Later Friday, Christopher Waller, a member of the Fed’s Board of Governors, is scheduled to discuss the economic outlook in a speech at the University of Notre Dame. Waller, an influential member of the governing board, may provide insights into the Fed’s next moves.

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