Unemployment Rate in the US Rises to Highest Level Since October 2021
07:51, August 9, 2024
The unemployment rate in the United States climbed to 4.3 percent in July, marking its highest level since October 2021. This rise was reported by Day.Az, citing data from the US Department of Labor. Analysts had anticipated a slightly lower rate of 4.1 percent.
During the reporting period, the US economy added a mere 114,000 jobs, the lowest number since December 2020. Despite this, the overall labor market remains relatively strong despite these initial signs of weakness.
While the US labor market has proven resilient throughout most of the pandemic era, recent data suggests a possible shift. This development is particularly significant as it is closely monitored by the Federal Reserve, which uses labor market conditions as a key factor in determining its monetary policy. A weakening labor market could potentially lead to adjustments in interest rates.
Furthermore, preliminary figures from the Bureau of Economic Statistics revealed a slowdown in US GDP growth in the first quarter of 2024, with a rate of 1.6 percent, down from the previously anticipated 2.5 percent in the previous quarter. This further underscores the potential for economic deceleration.