US adds 254,000 people Nonfarm payrolls decreased in September as the unemployment rate fell to 4.1%, according to Bureau of Labor Statistics (BLS) data released Friday.
Economists predict 150,000 people jobs added to septemberthe unemployment rate is expected to remain at 4.2%, slightly higher than the originally reported increase of 142,000 jobs in August. According to Go to Market Watch. Meanwhile, the previously reported job growth numbers for July and August have been revised upward by 55,000 and 17,000, respectively, reflecting the trend under the Biden-Harris administration of overestimating job growth in initial estimates. The cumulative number of new jobs reported in 2023 is estimated to be approximately 1.3 million. Less than previously thought. (Related: ‘Mystery’: Shelter costs continue to rise under Biden-Harris administration)
The Fed cut interest rates by 0.5% in September, the Fed’s first policy change since July 2023, as concerns about an economic slowdown grew as inflation slowed and the labor market slowed. This was the first rate cut since March 2020. Empowering businesses and consumers, who may be more willing to buy due to lower interest rates, and boosting employment through greater access to capital.
WASHINGTON, DC – September 18: Federal Reserve Chairman Jerome Powell announced at a press conference after the September Federal Open Market Committee meeting that the Federal Reserve would cut the central bank’s benchmark interest rate by 50 basis points. spoke. (Photo by Anna Moneymaker/Getty Images)
The unemployment rate rose by 0.7% from just 3.4% in April 2023. According to to the Federal Reserve Bank of St. Louis. Meanwhile, inflation in August was 2.5% year-on-year, well below the recent peak of 9% in June 2022. When President Joe Biden took office in January 2021, the inflation rate was only 1.4% compared to the previous year.
Prior to September’s interest rate cut, the FOMC kept its target federal funds rate unchanged at 23-year highs of 5.25% and 5.50% for eight consecutive meetings to combat runaway inflation. The combination of high inflation and high interest rates is pushing many Americans into bankruptcy, with past due credit card balances reaching a 12-year high in the first quarter of 2024, according to the Philadelphia Fed.
Lower interest rates could ease capital constraints and boost economic growth. The US economic growth rate in the second quarter of 2024 was 2.8% compared to the same period last year, up from 1.4% in the first quarter.
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