Yellen Affirms US Labor Market Remains Healthy Despite Slower Hiring Rate, Reports Reuters

By David Lawder

RALEIGH, North Carolina – U.S. Treasury Secretary Janet Yellen stated on Thursday that the country maintains a "good healthy labor market," despite a slowdown in job creation over the past few months.

During a press conference in North Carolina, Yellen noted that the unemployment rate for July stood at 4.3%, marking a three-year high, yet it remains low relative to historical averages.

The Labor Department’s upcoming employment report for August is expected to be released soon, with predictions suggesting a slight decrease in the unemployment rate to 4.2%.

However, recent private payroll data revealed that employers hired the fewest workers in three and a half years in August, with previous month’s figures also revised downward, indicating a potential sharp slowdown in hiring.

Yellen remarked, "Even though the pace of job creation has slowed, it is normal and adequate to absorb new entrants into the labor market." She also highlighted that the economy continues to grow robustly, with a growth rate of 3% in the second quarter, supported by solid consumer and investment spending data.

"I think we’ve got a good healthy economy and labor market," Yellen concluded.