Stability in the US Jobs Market

Stability in the US Jobs Market

The US job market remains steady despite record-high interest rates, with 187,000 jobs added in August, matching July's numbers. President Biden praised the strong job growth, surpassing economist expectations of 170,000 new jobs. The Federal Reserve closely watches the labour market and inflation. Interest rates have been raised 11 times in under two years, reaching 5.25% to 5.5%, impacting mortgage and loan costs. Certain industries like healthcare and hospitality continue to grow, while transportation and warehousing suffered job losses due to Yellow trucking company's bankruptcy. Recent data suggests a slowing labour market, with fewer job openings and private sector job growth decline. Layoff announcements reached their highest level since 2020. The Fed aims to lower inflation from its peak of 9.1% to a 2% target without harming employment. Jerome Powell, affirmed their commitment to this, despite uncertainties due to high interest rates and varying consumer spending patterns.