What does August’s job report say about the recovery?

After six months of job gains each above 200,000, the US economy sees a less robust 142,000 new hires last month

September 5, 2014 10:00AM ET

by Inside Story Team @AJInsideStoryAM

After half a year of U.S. employers’ adding more than 200,000 jobs each month, August broke the trend.

The Department of Labor reports employers added only 142,000 new jobs last month. It’s the smallest increase since 2013 — a sign of continued recovery but also unpredictability.

Unemployment fell very little in August, from 6.2 percent to 6.1 percent. Economists attribute this not to people’s finding jobs but to their giving up on job hunting. Whether you think the economy is recovering may depend on your age, location and skill set.

Despite the weaker than expected job numbers, the economy continues to improve. In the second quarter of 2014, real gross domestic product in the U.S. rose at an annual rate of 4.2 percent, driven by an increase in exports and consumer spending.

It looks as if the economy is strong, but the labor market may be wobbling. What will that mean for interest rates?

The Federal Reserve has kept borrowing rates near zero since 2008. Now any increase in the next six months may be in doubt. Wage growth remains sluggish and the slower job growth means the Fed may not be so quick to raise rates.

Does this report show a mere hiccup or indicate something more serious?

What does it mean for the economic recovery?

We asked a panel of experts these questions and more on this edition of “Inside Story.”