Page 35 - MIN SOC 5 SEPT 2015
P. 35
U.S. NEWS A7
Saturday 5 September 2015
US jobless rate falls to 7-year low; Fed move still unclear
Workers paint the Julien Dubuque Bridge along U.S. 20 in lately. to full employment if we at retailers, restaurants and
Dubuque, Iowa. The U.S. government issued the August jobs re- For one thing, there are aren’t already there,” said hotels. State and local gov-
port on Friday, Sept. 4, 2015. signs that China’s econ- Carl Tannenbaum, chief ernments added 31,000
omy, the second largest economist at Northern Trust jobs in August, while health
(Dave Kettering/Telegraph Herald via AP) in the world, is stumbling, and a former Fed econo- care gained 40,500.
which could drag down mist. Michael Kanter, president
global growth. The slow- Even the slip in hiring last and co-owner of Cam-
down has already caused month may not end up as bridge Naturals, a health
violent swings in the finan- bad as it looks. August’s products store in Cam-
cial markets that could un- jobs totals are typically re- bridge, Massachusetts,
dermine consumer confi- vised much higher in later plans to add two workers
dence. months, because of the to his 20-person staff to
Friday’s report suggested difficulties in adjusting the handle increased foot traf-
to many economists that data for the end of millions fic and sales.
the U.S. job market, at of summer jobs. “We’re seeing growth.
least, has satisfied the Fed’s Also, consumer spending We’re seeing opportunity.
criteria. has been healthy and has We’re definitely in a hiring
“We’re well on our way been powering job growth mode,” he said.q
C. S. RUGABER hike in years will be sorely
AP Economics Writer disappointed,” said Me-
WASHINGTON (AP) — U.S. gan Greene, chief econo-
unemployment fell to a mist at John Hancock Asset
seven-year low of 5.1 per- Management.
cent last month, but hiring Nevertheless, the pros-
slowed — a mixed bag of pect of higher interest
news that offers few clues rates weighed heavy on
to whether the Federal the stock market Friday,
Reserve will raise rock-bot- with the Dow Jones indus-
tom interest rates later this trial average plunging 272
month. points, or 1.7 percent.
The Labor Department re- Higher rates rise would
port, issued Friday, was most likely push up bor-
closely watched because rowing costs for mortgages
it will be the last snapshot of and other loans for con-
the job market before the sumers andbusinesses, and
Fed meets in two weeks. some on Wall Street fear
And overall, it painted a that could put a damper
picture of an economy on corporate profits and
growing at a modest but the larger economy.
steady pace seven years The Fed cut the short-term
after the Great Recession. rate it controls to a re-
But it wasn’t the unambigu- cord low of nearly zero in
ous signal many on Wall December 2008 to try to
Street were hoping for. stimulate growth during the
The unemployment rate fell Great Recession.
from 5.3 percent in July to For months, Fed officials
its lowest point since 2008 have been saying the
and is now at a level Fed economy appears to be
officials say is consistent getting strong enough to
with a healthy economy. tolerate the first increase in
But employers added a interest rates in a decade.
moderate 173,000 jobs in They have signaled that
August, the fewest in five they might raise rates at
months. their Sept. 16-17 meeting.
“Anyone hoping today’s Yet other factors have
data would clear up the clouded those predictions
timing of the Fed’s first rate
