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Business

Hiring slowdown cuts chance of September rate hike

Opening sequence

Opening sequence

Business

Hiring slowdown cuts chance of September rate hike

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COMING UP:Hiring slowdown cuts chance of September rate hike

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Transcript

00:00:02
>> A hiring slowdown and a gradual rise in wages in August taking the heat off of the Federal Reserve. I'm Conway Gittens in New York. The Labor Department announcing on Friday smaller than expected job growth in August of 151,000, that is below the 12-month average. And there's nothing to cheer about when it comes to wages.
00:00:23
Paychecks grew by just $0.03 in the month of August. Now if we look closer at the data it looks like not many employers were in a rush to add new workers. The only sectors of the economy to see stronger job growth in August compared to July for wholesale and retail trade.
00:00:40
Those lower paying jobs in the services sector made up the bulk of August job gains. We saw losses in terms of factory jobs and construction. The closely watched unemployment rate held steady at 4.9%. With the meager job gains in August, it points to an economy that continues to muddle along.
00:01:00
And so expectations of a September rate hike have disappeared. But, the market is still expecting the Federal Reserve to hike rates in December.