Thorn in economy side-Inflation

[alebrewer]

AI Overview


The U.S. unemployment rate rose to 4.3% in August 2025, the highest level in nearly four years, as job growth slowed and the number of unemployed people increased. This shift from a strong job market to weakening conditions is characterized by a sharp decrease in non-farm payroll gains, a contraction in the labor market, a decline in the labor force participation rate, and an increase in the average duration of unemployment.

Key Indicators of a Weakening Labor Market

• Rising Unemployment Rate:
  The rate increased to 4.3% in August 2025, its highest point since October 2021.
  
  
• • Slowdown in Job Growth:
    Only 22,000 jobs were added in August, a fraction of the expected number, and June saw a net job loss for the first time since the pandemic.
  • Increase in the Unemployed:
    The number of unemployed individuals grew significantly, while the job-finding rate for those seeking work declined.
  • Longer Unemployment Spells:
    The average duration of joblessness has lengthened.
  • Shrinking Labor Force:
    The labor force has contracted, and the labor force participation rate has fallen to a new low.

Isn't that exactly what they were trying to accomplish with the high rates?

 

[Charles West]

Trump's polls are fine, the GOP is ahead by double digits of the Democrats on key issues, such as the economy, immigration, and crime, and that pretty much tells you all you need to know. I could wax on about the incredible level of Cap X spending occurring right now and the incoming economic boom that spending is signaling for the coming years, or I could make myself miserable with inconsequential minutiae.

 

[J Grant]

Isn't that exactly what they were trying to accomplish with the high rates?

Why is a stalled economy and rising unemployment an "accomplishment?

The economy was fine even with he higher rates under Biden, but Trump's chaotic administration, firings, and tariffs are slowing it down.

 

[Charles West]

Why is a stalled economy and rising unemployment an "accomplishment?

The economy was fine even with he higher rates under Biden, but Trump's chaotic administration, firings, and tariffs are slowing it down.

The economy isn't stalled, we just had a 3.8 revision to 2nd quarter GDP. If it was 1% I would agree with you.

 

[alebrewer]

Why is a stalled economy and rising unemployment an "accomplishment?

The economy was fine even with he higher rates under Biden, but Trump's chaotic administration, firings, and tariffs are slowing it down.

Take a gander at this, J. Hopefully it will help you understand.

Unemployment Rate 101 | Labovitz School of Business and Economics | University of Minnesota Duluth

If there is one economic indicator that is most used as a measure of economic health, it is the unemployment rate. Many people think they know about the unemployment rate. Are you one of those who’d be surprised you may have more to learn? Read on to find out.

lsbe.d.umn.edu

 

[J Grant]

Maybe it is an anomaly, but my appraisal business has been dead slow for the past two weeks. Before that, I had a reasonable two busy months. Trump should slow his roll, stop the chaos, and let things settle down.

 

[J Grant]

https://www.stlouisfed.org/on-the-e...-unemployment-evidence-occupational-variation

 

[J Grant]

Take a gander at this, J. Hopefully it will help you understand.

Unemployment Rate 101 | Labovitz School of Business and Economics | University of Minnesota Duluth

If there is one economic indicator that is most used as a measure of economic health, it is the unemployment rate. Many people think they know about the unemployment rate. Are you one of those who’d be surprised you may have more to learn? Read on to find out.

lsbe.d.umn.edu

The article is from 2022!
The article was good in taht it explains different ways to read the data, howver the overall trend is what is now - fewer jobs added and rising unemployment.

All the MAGA folks jeering at the beatdown of the professional class - who the heck did they think was paying all the high wages for trade work?

 

[alebrewer]

The article is from 2022!
The article was good in taht it explains different ways to read the data, howver the overall trend is what is now - fewer jobs added and rising unemployment.

Exactly. The objective of higher interest rates (at least one of them) is to cool down an economy - part of which includes allowing the unemployment rate to increase. No one that actually understands Economics wants a 0 unemployment rate. Most Economists put the natural rate at around 5%. This not only serves to cool the economy, but also creates a cushion for job movement. When unemployment is too low, there is friction WRT job movement.

That make sense?

 

[Charles West]

Exactly. The objective of higher interest rates (at least one of them) is to cool down an economy - part of which includes allowing the unemployment rate to increase. No one that actually understands Economics wants a 0 unemployment rate. Most Economists put the natural rate at around 5%. This not only serves to cool the economy, but also creates a cushion for job movement. When unemployment is too low, there is friction WRT job movement.

That make sense?

Yes.