{"id":1508,"date":"2025-09-05T19:06:11","date_gmt":"2025-09-05T19:06:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/1508\/"},"modified":"2025-09-05T19:06:11","modified_gmt":"2025-09-05T19:06:11","slug":"us-economy-adds-just-22000-jobs-in-august-as-labour-market-cools-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/1508\/","title":{"rendered":"US economy adds just 22,000 jobs in August as labour market cools \u2013 The Irish Times"},"content":{"rendered":"

The US added just 22,000 jobs in August, raising fears that the labour market is stalling and intensifying pressure on the Federal Reserve to slash borrowing costs this month.<\/p>\n

Friday\u2019s figure from the Bureau of Labor Statistics was far below the upwardly revised 79,000 jobs added in July and the 75,000 expected by analysts polled by Bloomberg.<\/p>\n

June\u2019s figure was revised down to a job loss of 13,000, the first time the economy has shed positions since the coronavirus pandemic in 2020.<\/p>\n

\u201cThe labour market\u2019s starting to freeze,\u201d said Diane Swonk at KPMG.\u201cIt\u2019s never good to see red ink and that was the first red ink we\u2019ve seen since December 2020 at the height of the Delta wave [of coronavirus] when the economy almost went into a double-dip recession.\u201d<\/p>\n

The report will deal a blow to US President Donald Trump<\/a>, who has touted his tax cuts and tariffs<\/a> as a boon to the world\u2019s biggest economy. Employment in tariff-exposed sectors has been hit hard by the trade turmoil.<\/p>\n

The US president has sharply criticised the Fed and its chief Jerome Powell for not cutting rates so far this year, insisting that high borrowing costs are hurting consumers and businesses.<\/p>\n

\u201cJerome \u2018Too Late\u2019 Powell should have lowered rates long ago,\u201d Mr Trump posted on his Truth Social platform following the report. \u201cAs usual, he\u2019s \u2018Too Late!\u2019\u201d<\/p>\n

US Treasuries surged in price after the payroll figures were released, as investors ratcheted up bets that the Fed will soon begin cutting rates again after 1 percentage point of reductions in 2024.<\/p>\n

\"\"Why are some independent Irish breweries turning off their taps and closing?<\/p>\n

The two-year yield, which is sensitive to rate expectations, tumbled 0.11 percentage points to 3.48 per cent. Wall Street stocks fell, with the blue-chip S&P 500 down about 0.8 per cent.<\/p>\n

Andrew Hollenhorst, chief economist at Citigroup, said a rate cut was now \u201call but locked in\u201d at the next meeting of the Fed\u2019s policy-setting committee on September 16-17.<\/p>\n

\u201cThe data shows that the labour market is moderating quite significantly, probably more than the Fed was expecting at the start of the year,\u201d said Gennadiy Goldberg, head of US rates strategy at TD Securities.<\/p>\n

Traders are now betting there is more than a 10 per cent chance of an extra-large half-percentage point cut at the Fed meeting later this month. Before the jobs data, futures markets were pricing in a quarter-point move.<\/p>\n

Steve Englander, global head of G10 currency research at Standard Chartered, said that the number meant that a bumper half-percentage point interest rate cut would now be a \u201cserious consideration\u201d for the Fed.<\/p>\n

In a sign of the scale of the slowdown, US job growth has dropped to an average of 27,000 in May to August, compared with 123,000 in the first four months of the year.<\/p>\n

The August figure was dragged down by job losses in wholesale trade, manufacturing and energy and mining sectors \u2014 industries that are exposed to the president\u2019s levies.<\/p>\n

\u201cTrade-exposed sectors were obvious victims in this morning\u2019s payrolls report,\u201d said Carrie Freestone, an economist at Royal Bank of Canada.<\/p>\n

Federal government payrolls also continued to slide, shedding another 15,000 jobs to leave the sector down by 97,000 since January as the Trump administration slims down government agencies.<\/p>\n

Job growth in healthcare, the sector that had been driving gains in recent months, also slipped to its weakest level since January 2022. Overall, the jobless rate increased to 4.3 per cent in August from 4.2 per cent the previous month.<\/p>\n

Fed chief Jerome Powell signalled last month that the central bank would probably cut rates in September as policymakers grew more concerned about the risk that elevated borrowing costs are restraining the jobs market. <\/p>\n

Friday\u2019s jobs report is the first from the BLS since Mr Trump sacked its commissioner, Erika McEntarfer, last month following a gloomy data release that he claimed was \u201crigged\u201d against him. Veteran BLS official William Wiatrowski has been standing in as commissioner since McEntarfer was fired. <\/p>\n

Mr Trump has nominated EJ Antoni, a loyalist from the rightwing Heritage Foundation, to take over the BLS on a permanent basis, but he must still be confirmed by the Senate. – Copyright The Financial Times Limited 2025<\/p>\n","protected":false},"excerpt":{"rendered":"The US added just 22,000 jobs in August, raising fears that the labour market is stalling and intensifying…\n","protected":false},"author":2,"featured_media":1509,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,969,113,1961,61,60,1963,1962],"class_list":{"0":"post-1508","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-donald-trump","10":"tag-economy","11":"tag-federal-reserve","12":"tag-ie","13":"tag-ireland","14":"tag-us-tariffs","15":"tag-work"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/1508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=1508"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/1508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/1509"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=1508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=1508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=1508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}