Prosperity Now Statement on August Jobs Report: 44 Months and Consecutive Months of Job Growth Despite Falling Short of Expectations

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For Immediate Release:
September 6, 2024

Contact:
Brad Bauman (202) 520-2155
[email protected]

WASHINGTON- The U.S. economy continued its record-breaking job creation streak, adding 142,000 nonfarm payroll jobs in August, though it fell short of economists' expectations of 163,000 jobs for the second consecutive month, according to data released Friday by the Bureau of Labor Statistics (LINK). This marks the 44th straight month of job growth, the longest sustained increase since record-keeping began in 1915. The unemployment rate decreasedslightly to 4.2%, down from 4.3% last month. The slower-than-expected growth highlights the ongoing impact of previous interest rate hikes, particularly affecting small and minority-owned businesses, which continue to face challenges in accessing and affording business loans.

The following is a statement from Marisa Calderon, president and CEO of Prosperity Now:

"While 44 consecutive months of job growth is a remarkable milestone, it's concerning that for the second month in a row, we've fallen short of expectations. This signals that businesses - especially small and minority-owned enterprises - are hesitant to invest and grow under the current high-interest rate environment," said Calderon. "As we highlighted last month, it is time for the Federal Reserve to consider easing interest rates to make capital more accessible and affordable for people seeking to invest in their futures."

"Additionally, we've been warning about uneven job growth across the country. Data from late last monthshowed that despite overall gains, unemployment rates remain higher in 350 of the 389 metropolitan areas, with only 61 seeing declines. This underscores a growing divide between the most prosperous regions and those that continue to lag behind, furthering economic stratification."

Background:

• In August, the unemployment rate declined to 4.2% from 4.3% in July. Among major worker groups, unemployment ticked down for Black workers to 6.2% (from 6.3%), but increased for Asian workers to 4.1% (from 3.7% in July), and for Hispanic workers to 5.5% (from 5.3% in July). White unemployment remained unchanged at3.8%.

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About Prosperity Now -- Since 1979, Prosperity Nowhas been a persistent voice championing economic opportunity, innovating outside of and beyond existing systems to build power for all communities. We advance racial and ethnic economic justice by investing in bold new ideas, and we work deeply at both the grassroots and national level to impact the entire ecosystem. By setting goals for our economy and following through with targeted approaches based on need, we are equipped to drive forward and cement big structural solutions. Learn more at www.prosperitynow.org.