US Hiring Plunges to 22,000 in August, Intensifying Fed Rate Cut Expectations Amid BLS Leadership Turmoil
US Hiring Plunges to 22,000 in August, Intensifying Fed Rate Cut Expectations Amid BLS Leadership Turmoil
New data released Friday reveals a significant slowdown in the U.S. labor market, with only 22,000 jobs added in August. This figure falls sharply from the 79,000 jobs recorded the previous month and well short of economists’ expectations, further fueling concerns about economic momentum.
The U.S. Bureau of Labor Statistics (BLS) report indicates a continued cooling trend in hiring, following a summer marked by a major slowdown. The unemployment rate edged up to 4.3%, remaining historically low but reflecting the deceleration.
This latest jobs data holds critical implications for the Federal Reserve. With top policymakers set to gather in two weeks, the lower-than-expected reading on Friday solidifies expectations for an interest rate cut – potentially the first adjustment since last year. Market sentiment, as measured by the CME FedWatch Tool, now places the odds of a quarter-point rate cut this month at 99%.
The report also arrives amidst significant political controversy surrounding the BLS. Last month, President Donald Trump controversially fired BLS Commissioner Erika McEntarfer following a previous dismal jobs report, which he suggested, without evidence, had been “manipulated.” McEntarfer, a Biden appointee, had served for two decades.
Trump has since nominated E.J. Antoni, chief economist at the conservative-leaning Heritage Foundation and a vocal critic of the BLS, as McEntarfer’s replacement. The dismissal of McEntarfer has drawn sharp criticism, with former BLS Commissioner William Beach condemning it as setting “a dangerous precedent and undermines the statistical mission of the Bureau.”
Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.