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U.S. economy added 315,000 jobs in August as companies continue hiring pace

Nonfarm payrolls rose solidly in August amid an otherwise slowing economy, as the unemployment rate ticked higher as more workers rejoined the work force, the Bureau of Labor Statistics reported Friday.

The economy added 315,000 jobs for the month, just underneath the Dow Jones estimate of 318,000. The unemployment rate rose to 3.7%, two-tenths of a share point greater than expectations.

Wages continued to go up, though slightly significantly less than expectations. Average hourly earnings increased 0.3% for the month and 5.2% from the year ago, both 0.1 percentage points below estimates.

Nevertheless, the numbers still pose a quandary for a Federal Reserve looking to get inflation in order.

Those payroll and wage gains came amid soaring inflation and concerns over a slowing economy that posted negative GDP numbers in the initial two quarters of the entire year, generally considered a telltale sign of recession.

Inflation is running near its fastest pace in a lot more than 40 years as a variety of a supply-demand imbalance, massive stimulus from the Fed and Congress and the war in Ukraine has sent the expense of living soaring.

The Fed has been battling the inflation problem with a number of interest hikes totaling 2.25% which are likely to continue into next year. In recent days, leading central bank figures have warned they have no intention on backing off their policy tightening measures and expect that even though they stop hiking, rates will remain elevated for quite a while.

One key channel the Fed wants policy impact may be the jobs market. Along with robust hiring, job openings are outnumbering available workers by way of a nearly 2-to1 margin, pressuring wages and developing a feedback loop that’s sending prices higher for not merely gas and groceries but additionally shelter costs and a number of other expenses.

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