U.S. Labor Market Outlook

By David Lawder

RALEIGH, North Carolina (Reuters) – U.S. Treasury Secretary Janet Yellen stated on Thursday that the U.S. still possesses a “good healthy labor market” despite a slowdown in job creation in recent months.

Yellen informed reporters in North Carolina that July’s unemployment rate is 4.3%, which is a three-year high but still considered very low by historical standards.

The Labor Department’s crucial jobs data for August is set to be released on Friday, with a slight decline in the unemployment rate expected to 4.2%.

However, private payroll data published on Thursday indicated that employers hired the fewest workers in 3-1/2 years in August, with the prior month’s hiring figures adjusted downward, indicating a potential significant slowdown in hiring.

Yellen remarked, “Even though the pace of job creation has slowed, it is normal and adequate to absorb new entrants into the labor market,” asserting that economic growth remains robust at 3% in the second quarter, alongside strong consumer spending and investment.

“I think we’ve got a good healthy economy and labor market,” Yellen concluded.