The unemployment rate in the U.S. rose to 4.3% in July, the highest level since October 2021. This increase suggests that the U.S. economy might be cooling down more rapidly than anticipated. According to the Department of Labor, the unemployment rate was up 0.2 percentage points from June’s rate of 4.1%. This marks the highest rate in two years and nine months. Non-farm payrolls grew by 114,000 jobs in July, falling short of the 179,000 increase seen in June.

Breaking it down by sector, employment in healthcare increased by 55,000 jobs, which was below the 63,000-job average over the past year. Construction saw an addition of 25,000 jobs, and transportation and warehousing added 14,000 jobs. Conversely, the information sector experienced a reduction of 20,000 jobs.

Average hourly wages rose by 0.2% from the previous month and 3.6% year-over-year, both 0.1 percentage points below market expectations. These employment figures indicate that the U.S. economy may be slowing down faster than previously forecasted. As a result, there is speculation that the Federal Reserve might cut interest rates for the first time since the onset of the COVID-19 pandemic at its next policy meeting. Federal Reserve Chair Jerome Powell has indicated that the Fed is monitoring the labor market closely in relation to potential interest rate adjustments.

(Hankyoreh 2024.08.02)