The Bureau of Labor Statistics (BLS) has again handed President Donald Trump a bleak set of jobs numbers, just one month after he fired the agency’s commissioner over weak employment data.
On Friday morning, the BLS reported that nonfarm payroll employment rose by only 22,000 in August. Analysts had forecast that the economy would add 75,000 jobs during the month. According to the agency, gains made in health care were offset by losses in federal government employment, as well as mining, quarrying and oil and gas extraction.
While July’s figures were revised up to 79,000 from 73,000, June’s numbers were revised down by 27,000, dropping from 14,000 to minus-13,000. Meanwhile, the unemployment rate edged up to 4.3 percent from 4.2 percent.
Lowering interest rates to stimulate the economy is known as expansionary monetary policy. This policy aims to reduce borrowing costs, encouraging households and businesses to increase spending and investment, which helps boost economic activity.
Given that the employment rose by only 22,000 in August it is likely that the Fed will lower the interest rate as Donald Trump has been pushing.
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