(TheConservativeTimes.org) – Hiring has ultimately slowed for the month of July as the United States has only added one hundred and fourteen thousand jobs this month, much fewer than expected. With this, the unemployment rate has also jumped to over four percent, but this could mean that The Feds would cut its rate in September as discussed.
Economists surveyed by FactSet said they expected one hundred and seventy five thousand jobs to be added in for the month, and they forecasted that the unemployment rate would remain steady at a little over four percent.
Although job growth had been slowing before this month, it was still relatively strong despite the Fed pushing its fund rates to the highest point in over two decades.
Robert Frick, corporate economist with Navy Federal Credit Union, said, “This should lock in not only a September rate cut, but perhaps a deeper cut in September and accelerate the schedule of cuts this year and next.”
The Fed could potentially cut rates by half of one percentage in September, according to Lara Castleton, U.S. Head of Portfolio Construction and Strategy at Janus Henderson Investors. She wrote, “The soft landing narrative is now shifting to worries about a hard landing.”
When looking at stocks, there has been an intense downturn that started last week and is expected to continue. This is due to concerns about the future of growth in certain industries because of a larger increase in jobless claims.
The unemployment rate is also sitting at its highest point since 2021 and it’s due to more people leaving the workforce than joining it within this month. When looking at the employer survey, there is both good and bad news, but rate cuts are expected in September.
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