US Unemployment Hits Four-Year High

Unemployment in the United States has risen to its highest level in four years, official figures show. The Bureau of Labor Statistics (BLS) reported on Friday that the unemployment rate increased to 4.3% in August, up from 4.2% in July.

The August jobs report also revealed the creation of only 22,000 new positions, roughly a third of economists’ expectations. This marks the third consecutive month in which job growth has fallen short, signalling a persistent slowdown in the US labour market.

President Donald Trump has blamed Federal Reserve Chair Jerome Powell for the disappointing figures, citing the central bank’s reluctance to cut interest rates. Following July’s report, Trump had dismissed the former BLS Commissioner, accusing her of manipulating data, and has now shifted the responsibility to Powell.

Labour Secretary Lori Shavez Derimar echoed the President’s criticism, stating that Powell should feel embarrassed over the weak employment numbers. Meanwhile, Commerce Secretary Howard Ludnik expressed optimism, suggesting the current slowdown may not last long.

Economists predict that at the Federal Reserve’s scheduled meeting on 17 September, officials may announce a reduction in interest rates by 0.25 to 0.50 percentage points to stimulate job growth.