U.S. unemployment rate jumps to 3.8%, as Hollywood strikes drag on and workers are dropped from payrolls.

The U.S. economy added 187,000 jobs in August, roughly in line with analysts’ expectations. The unemployment rate jumped sharply to 3.8 %, the U.S. Bureau of Labor Statistics reported Friday.

Analysts had expected employers to add 170,000 jobs last month, according to a survey of forecasters by data firm FactSet.

The jobs report reflects recent labor market headwinds. Partially accounting for the high unemployment rate are the Hollywood strikes, as Screen Actors Guild and American Federation of Television and Radio Artists (SAG-AFTRA) and Writers Guild of America (WGA) workers were dropped from payrolls. Trucking company Yellow’s bankruptcy also weighed on job gains.

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    2•1 year ago

    Gaining jobs but unemployment going up “sharply”…seems like the Feds ideal scenario. They wanted a cooled down labor market to reduce inflation, while avoiding a recession.