Policy Updates: U.S. job growth stalls

U.S. job growth stalls as unemployment rises to 4.3% (Washington Post): The latest U.S. jobs report, released this morning, shows the economy added just 22,000 jobs in August, far below expectations, while unemployment rose to 4.3%, the highest since 2021. June’s figures were revised downward to show the first monthly job loss since the pandemic.

While the report tracks “non-farm” jobs, it still matters for agriculture. Industries tied to the farm economy—like manufacturing, equipment, transportation, and wholesale trade—all shed jobs, partly due to the impact of tariffs. Fewer consumer jobs also mean less spending power, which could weaken domestic demand for food and ag products.

Health care and social assistance were among the few sectors still adding jobs, while the federal government has cut nearly 100,000 positions this year. Economists say the slowdown raises the risk of recession and adds pressure on the Federal Reserve to cut interest rates this fall.