The U.S. economy added 22,000 jobs in August, falling below the 75,000 economists expected, while the unemployment rate rose slightly to 4.3 percent, the Bureau of Labor Statistics said.
Friday's report also included revisions, showing the economy shed 13,000 jobs in June though job creation in July was revised up by 6,000.
"The stagnant American jobs market reflects the pressure many small businesses are facing from high interest rates that are around two percentage points higher than other industrialized nations," said Job Creators Network CEO Alfredo Ortiz. "When small businesses, which create nearly two-thirds of new jobs, can't access credit, they can't invest back into their businesses. As a result, job creation suffers."
The weak report will help make the case for the Federal Reserve to cut interest rates later this month at its policy meeting. Ortiz argued for at least half a point cut. "If the Fed had listened to Trump, summer job creation would have been much stronger," he argued.
Still, Ortiz highlighted other aspects of Friday's report showing a labor market that's "stronger than the topline numbers suggest."
"Wages are growing faster than inflation, improving workers' standards of living, a stark change from the Biden administration," he continued. "The household survey showed solid seasonally-adjusted job creation. And unproductive federal government jobs continue to decline."
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"New JCN polling finds that nearly all small businesses plan to take advantage of the tax cuts in the Big Beautiful Bill that was signed into law on Independence Day, boosting job creation and wages," Ortiz added. "And President Trump's efforts to reduce crime in Democrat cities will allow more minority entrepreneurs to finally live the American Dream, without fear for their safety. Significantly lower interest rates and the tax cuts coming online will significantly strengthen the labor market in the months ahead."
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