Employment Pace: US job creation slows

Only 142,000 net new jobs in August compared to the expected 223,000

WASHINGTON: The US economy pumped out far fewer jobs than expected in August, dimming the picture for overall growth and easing pressure on the Federal Reserve to quickly raise interest rates. The Labor Department’s report Friday of only 142,000 net new jobs in August – compared to the 223,000 markets were expecting – broke a six-month streak of more than 200,000 a month that had cheered policymakers and job-seekers. The department also lowered by 28,000 the number of new jobs reported for the two previous months, leaving the impression of a jobs market significantly weaker than understood over the past half-year. Analysts were quick to note that August data is frequently volatile and possibly out of line with trends due to seasonal shifts. And though other data has been mixed, the broader picture is of steady economic growth. Even so, August’s jobs numbers reinforced the view that the economy is not picking up steam.

Published in The Express Tribune, September 7^th, 2014.

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