Muddled US jobs picture to weigh on Fed decision on stimulus action

Associated Press

WASHINGTON

Employers are sketching a hazy picture of the U.S. job market for the Federal Reserve to weigh in deciding this month whether to reduce its stimulus for the economy — and, if so, by how much.

The economy added 169,000 jobs in August but many fewer in June and July than previously thought. The unemployment rate fell to 7.3 percent, the lowest since 2008, but only because more people stopped looking for work and no longer were counted as unemployed.

All told, Friday’s report from the Labor Department pointed to a lukewarm job market: Hiring is steady but subpar. Much of the growth is in lower-paying occupations. And many people are giving up on their job searches in frustration. The proportion of Americans working or looking for work reached its lowest point in 35 years.

The sluggish jobs report reflects a U.S. economy that’s still struggling to accelerate. The economy grew at a modest 2.5 percent annual rate from April through June, and most analysts think it’s weakened since then.