HomeTop U.S. NewsUnemployment Hits 18-Month High in Latest Jobs Report

Unemployment Hits 18-Month High in Latest Jobs Report

Data released by the Bureau of Labor Statistics showed that the U.S. unemployment rate rose to 3.8% from 3.5% the previous month. This is the highest unemployment rate in the U.S. since February 2022. Still, there appear to be some positive repercussions arising from this development.

Jefferies US economist Thomas Simons explained, “Given the tightness in the labor market, more supply is welcome, and sometimes it takes a little while for new entrants to find a fit.” Contrary to the upward trajectory in unemployment, the civilian labor force grew in numbers, adding 736,000 participants from the previous month. The labor force participation rate for August was 62.8%; its highest level since February 2020, when it reached 63.3%.

This latest jobs report has indicated a more balanced labor market, which is a good sign for the Federal Reserve as its September meeting approaches. This cooldown could be a factor in the argument to convince the central bank to hold off on further interest rate hikes.

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