<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1QiKUD_0vNFKOH600" alt="https://img.particlenews.com/image.php?url=1QiKUD_0vNFKOH600" width="1100" height="665" ><figcaption>A cyclist rides past a "Now Hiring" sign posted on a business storefront in San Gabriel, Calif., on Aug. 21, 2024. U.S. employers added 142,000 jobs in August, while the unemployment rate dipped to 4.2%. Frederic J. Brown/AFP via Getty Images</figcaption></figure><p>The latest monthly report on the U.S. jobs market had been eagerly anticipated as a key gut check on the health of the economy. Unfortunately, it delivered a mixed picture that doesn't offer clear conclusions about where things stand.</p><p>Overall, the data out on Friday suggests that hiring has slowed from earlier this year, but not as sharply as some had feared a month ago. </p><p>It's a somewhat cloudy combination that policymakers at the Federal Reserve will need to sort through as they decide how aggressively to cut interest rates later this month. </p><p>Here are four takeaways from the jobs numbers for August. </p><h2>The job market looks stronger in August than the month before</h2><p>U.S. employers added 142,000 jobs in August — a marked increase from the 89,000 jobs created in the previous month. </p><p>Meanwhile, the unemployment rate dipped to 4.2%. That was a relief after the rate had unexpectedly jumped to 4.3% in July, sparking fears about the labor market — and the broader economy. </p><p>Much of the increase in July's unemployment rate was the result of temporary layoffs, and many of those people went back to work in August. </p><p>Hiring last month was concentrated in hospitality (34,000 jobs), health care (31,000 jobs) and construction (34,000 jobs), while factories and retailers cut jobs. </p><h2>But the job market looks weaker in August than earlier this year</h2><p>While employers added more jobs in August than they did in July, the overall pace of hiring has been slowing down. </p><p>Last month's job gains were about 30% below the average of the previous twelve months. What's more, job gains for June and July were revised down by a total of 86,000 jobs. </p><p>That's consistent with other reports, including one showing fewer job openings by employers in July. And while the unemployment rate dipped in August, it's still up half a percentage point from the beginning of the year.</p><p>Stock markets dropped as investors took the glass half-empty stance, especially after employers created fewer jobs than economists had expected in August.</p><h2>Wages are rising faster than prices</h2><p>A slowing labor market compared to earlier this year may not be encouraging news for job seekers, but for people currently employed there was good news: Average wages in August were up 3.8% from a year ago. </p><p>Wage gains have been outpacing inflation for over a year now, and that trend likely continued last month. (August inflation figures will be released next week.) </p><p>That means workers' real buying power is increasing, helping to offset the big price hikes of previous years. </p><h2>No clear signal for the Federal Reserve</h2><p>Unfortunately for policy makers, Friday's mixed labor report doesn't provide clear signals for how to proceed.</p><p>The Fed has clearly indicated it plans to cut interest rates when policymakers gather on Sept. 17-18, and the central bank has been keeping a close eye on the job market as it weighs how much to actually cut them. </p><p>But Friday's report doesn't provide too much clarity. The dip in the unemployment rate suggests that the central bank can move slowly, trimming interest rates by a modest 0.25 percentage points. </p><p>But the downward revision in job growth in June and July might suggest more aggressive action — perhaps a half-point rate cut. </p><p>That's the challenge with being "data dependent," as Fed policymakers like to describe themselves. Sometimes the data point in different directions. </p></div></body>

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The latest jobs data provides a really confusing picture. Here are 4 things to know

The latest monthly report on the U.S. jobs market had been eagerly anticipated as a key gut check on the health of the economy. Unfortunately, it delivered a mixed picture that doesn't offer clear conclusions about where things stand. Overall, the data out on Friday suggests that hiring has slowed...

The latest jobs data provides a really confusing picture. Here are 4 things to know

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