U.S. job market slows, but it's not yet a ‘three-alarm fire,' economist says

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The labor market has shown unambiguous signs of cooling, economists said. Recession could follow if the trajectory continues.

Employers added 142,000 jobs in August, less than expected. The unemployment rate declined to 4.2%, according to the Bureau of Labor Statistics jobs report.

"We're still on this trajectory that's not a three-alarm fire right now," said Nick Bunker, economic research director for North America at the job site Indeed.a soft landing for the economyThe good news: That figure is an increase from the 89,000 jobs added in July. The unemployment rate also fell slightly, to 4.2% from 4.3% in July.

Overall, data points"are not necessarily concerning or at recessionary levels yet," he added." they are softer. They may be preludes to a recession."largely not attributable That said, the job hunt has become more challenging for job seekers than in the recent past, according to Bunker.Federal Reserve officials are expected to start cutting interest rates at their upcoming meeting this month, which would take pressure off the economy.

 

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