U.S. unemployment rose in August to its highest level since February 2022 despite more jobs being created than expected, the Labor Department announced.
The unemployment rate stood at 3.8%, up from 3.5% in July. However, 187,000 jobs were created, above the 170,000 expected by analysts.
Job creation for June and July was revised sharply downward, totaling 110,000 fewer new jobs than initially announced: 105,000 jobs were created in June versus the 185,000 initially announced, and 157,000 in July instead of 187,000.
“Employment continued its upward trend in health, recreation, hospitality, social assistance, and construction services. Employment in transportation and logistics declined,” the U.S. Labor Department said in its statement.
The increase in the unemployment rate is due to the fact that the economically active population increased by more than half a million people during the month of August.
Labor shortages since the COVID-19 pandemic pushed employers to raise wages, which was good news for workers but one that helped trigger inflation.
