"The U.S. economy added just 22,000 jobs in August, and prior months were revised lower again, signaling a recession may have already started. Last month's gain was well below expectations of about 75,000, and the unemployment rate rose to 4.3%, the highest it has been in nearly four years, according to the Bureau of Labor Statistics. "It's clear the job market is struggling," Mark Zandi, chief economist at Moody's Analytics, told Fortune."
"The weak August tally followed downward revisions to prior months. June was restated to show a net job loss of 13,000-the first decline since 2020-while July's gain was nudged higher, leaving overall employment 21,000 lower than previously reported.Zandi called the June loss especially significant: "Historically, when recessions are dated, they're dated back to the first month of payroll declines. That would suggest that if we are going into recession, it began in June.""
The U.S. economy added just 22,000 jobs in August, far below expectations, while the unemployment rate rose to 4.3%, its highest in nearly four years. June payrolls were revised to a net loss of 13,000, the first decline since 2020, and overall employment was reported 21,000 lower than previously stated. Revisions point to a consistent employment decline that could date a recession to June. Health care and social assistance added jobs, but federal government payrolls, energy, manufacturing, and wholesale trade declined, and a transportation equipment strike erased about 15,000 factory jobs. Layoffs remain subdued, acting as a firewall, and the weak data increased bets on Fed rate cuts amid political pressure.
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