WASHINGTON (AP) — It’s an unexpected slowdown in hiring, after some recent numbers suggesting that the economy was growing at a healthy pace.
The government reports that employers added just 142,000 jobs in August. It snapped a six-month streak in which more than 200,000 jobs were added each month.
Patrick O’Keefe of the consulting firm Cohn-Reznick says the report is puzzling. He says the tepid job growth is inconsistent with surveys showing businesses and consumers gaining confidence.
But Paul Ashworth, an economist at Capital Economics, says it’s “probably just an isolated blip.” Still, he expects the report to bring speculation that “the U.S. recovery is somehow coming off the rails again.”
The weaker-than-expected figures make it unlikely that the Federal Reserve will speed up its timetable for raising interest rates. Most analysts expect the first rate hike around the middle of next year.
Despite the smaller job gains, the unemployment rate fell to 6.1 percent from 6.2 percent. That was because more people without jobs stopped looking for one and were no longer counted as unemployed.
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170-a-16-(Tara Sinclair, economics professor at George Washington University and economist for Indeed.com, in AP interview)-“that at 142,000”-Tara Sinclair, an economics professor at George Washington University and an economist for Indeed.com, says the August jobs number was softer than expected. ((note cut length)) (5 Sep 2014)
< 172-a-11-(Tara Sinclair, economics professor at George Washington University and economist for Indeed.com, in AP interview)-“back to work”-Tara Sinclair, an economics professor at George Washington University and an economist for Indeed.com, says while employers added only 142,000 jobs in August, it was the seventh straight month of solid gains. (5 Sep 2014) < APPHOTO NYBZ117: In this photo taken Tuesday, Aug. 19, 2014, Freddy Jerez, of Hollywood, Fla., fills out a job application during a job fair in Sunrise. Fla. The government issues the August jobs report on Friday, Sept. 5, 2014. (AP Photo/Alan Diaz) (19 Aug 2014) < Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.