Employment Research Brief: August 2024

Rising Joblessness Puts Pressure on the Fed to Stay on Course for a Soft Landing

Unemployment rate hits a near three-year high. Total employment increased by 114,000 jobs in July, the second-lowest monthly gain in 2024 and falling well under the trailing-year average of 215,000 roles added. That hiring slowdown contributed to unemployment rising by 20 basis points month-over-month to 4.3 percent, the highest measure since October 2021. Health care accounted for about half of the overall net July employment gain, while accommodations and food services as well as construction also recorded monthly increases of at least 20,000 jobs. Headcount reductions, however, spanned several labor segments. The sharpest drops occurred in the information, finance and insurance as well as educational services sectors. In total, the number of unemployed people rose by 352,000 to 7.2 million.

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