U.S. job growth slows, Fed eyes rate cuts
The U.S. labor market is showing clear signs of cooling. Over the past four months, only 107,000 new jobs were added — down sharply from 491,000 in the first four months of 2025.
Deloitte’s key takeaways:
- August job creation was limited, with healthcare and leisure driving most gains while construction, manufacturing, finance, and government all saw declines.
- Unemployment rose to 4.3%, the highest since 2021, with unskilled workers hit hardest.
- Wage growth slowed to 3.7% annually, easing inflation pressures but raising concerns about demand.
- Markets now expect multiple Fed rate cuts before year-end as policymakers balance weak job growth with persistent inflation.
The slowdown underscores the challenges of navigating tariffs, immigration policy shifts, and inflationary pressures — all while ensuring household resilience.
Source: https://www.deloitte.com/us/en/insights/topics/economy/global-economic-outlook/weekly-update.html
