US employers added a solid 187,000 jobs in August in sign of a still-resilient labor market

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The nation's employers added a solid 187,000 jobs in August in a sign of a still-resilient labor market despite the high interest rates the Federal Reserve has imposed.

WASHINGTON — The nation's employers added 187,000 jobs in August, evidence of a slowing but still-resilient labor market despite the high interest rates the Federal Reserve has imposed.

Indeed, the proportion of Americans who either have a job or are looking for one rose in August to 62.8%, the highest level since February 2020, beforeThe August jobs report also showed that wage gains are easing, which may help signal to the Fed that inflation pressures are cooling: Average hourly wages rose 0.2% from July to August and are up 4.3% from August 2022. The year-over-year increase was down from 4.4% in both July and June.

The Fed wants to see hiring slow because intense demand for labor tends to inflate wages and feed inflation. The central bank hopes to achieve a rare "soft landing," in which its rate hikes would slow hiring, borrowing and spending enough to curb high inflation without causing a deep recession. So far, the job market has been cooling in the least painful way possible — with few layoffs. The Labor Department reported Thursday that the number of Americans applying for unemployment benefits — a proxy for job cuts — fell for a third straight week.

 

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