August jobs report shows US economy still adding workers but at slightly slower rate

The Labor Department on Friday reported the economy in August added 315,000 new jobs, indicating the economy continues to add jobs but at a slight slower rate.

The unemployment rate for August was 3.7%, compared to 3.5% for July and was the highest monthly rate since February when it was 3.8%

Economists expect 318,000 jobs were added in August and that the unemployment rate would hold steady at 3.5%, according to Dow Jones.

The August number was far below that in the previous month when the economy added a surprisingly unexpected 528,000 jobs.

The report Friday will be one of the last big economic reports before the Federal Reserve considers in its late September meeting to raise rates, according to CNBC.

Some experts say the modest August jobs gain – as the economy still continues to recover from the worst of the pandemic – is better than large one, because that would be a sign of a slowdown, which would prevent the Fed from again raising interest rates to slow inflation.

Other important data Fed will consider at Sept. 20-21 meeting is August consumer price index, released Sept. 13.

As a result of falling gas prices, CPI expected to be high but lower than July’s 8.5% annualized pace, CNBC also reports.