U.S. job growth slows, Fed eyes rate cuts

U.S. job growth slows, Fed eyes rate cuts

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:

1. August job creation was limited, with healthcare and leisure driving most gains while construction, manufacturing, finance, and government all saw declines.
2. Unemployment rose to 4.3%, the highest since 2021, with unskilled workers hit hardest.
3. Wage growth slowed to 3.7% annually, easing inflation pressures but raising concerns about demand.
4. 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