Unemployment Rate Takes Unexpected Jump

It's now 4.3%, highest since 2021; employers added a weaker-than-expected 114K jobs
By John Johnson,  Newser Staff
Posted Aug 2, 2024 8:03 AM CDT
Hiring Is Much Weaker Than Expected
A hiring sign is displayed at a grocery store in Deerfield, Ill.   (AP Photo/Nam Y. Huh, File)

The latest unemployment report is out, and it reaffirms that the once-booming US job market runs the risk of fizzling:

  • The number: Employers added 114,000 jobs in July, well below expectations of 185,000, reports CNBC. That's down from a revised figure of 179,000 in June; a dip had been expected because of Hurricane Beryl in Texas, but not one this large.
  • The rate: The unemployment rate jumped to 4.3% from 4.1%, though it had been expected to remain the same. The rate is now at its highest since October 2021.

  • The markets: Dow futures were down more than 500 points immediately after the report's release. They had been down about 300 just ahead of the report, and the losses mounted once it came out.
  • Earnings: Average hourly earnings, a closely watched metric, were up 3.6% in July from the previous year, which is below expectations and the smallest increase since May 2021. The monthly gain was 0.2%, below expectations of 0.3%.
  • Context: "America is still adding jobs," per the Wall Street Journal. "But the labor market's strength has been fading, and Friday's report adds to evidence that it could be on its way to weakness."
  • Context, II: From January through June of this year, the economy added about 220,000 jobs a month, down from 251,000 last year, 377,000 in 2022, and 604,000 in the post-pandemic boom of 2021, per the AP.
(More unemployment stories.)

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