The Fed published its “Beige Book”: it admits concerns about the labor market in many regions of the US

The American employers become more selective and workers take longer to find a job, in a context of weakening US labor market despite stable employment levels, even with some improvement, the Federal Reserve this Wednesday.

“Employers were more selective in their hiring and less likely to expand their workforces, due to concerns about demand and an uncertain economic outlook,” the report said. Fed in its “Beige book”its periodic survey on the conditions of the country’s economy.

As a result, “candidates faced greater difficulties and more time in finding a job”added the report, based on a survey conducted in late July and August among companies and economic agents.

“Employment levels remained stable overall, even rising slightly in recent weeks”the central bank said.

“Some regions (regional Fed affiliates, editor’s note) reported that companies only filled necessary positions, reduced teams and hours, left positions vacant to reduce staff (…), even if cases of layoffs are rare,” the document detailed.

US unemployment rose to 4.3% in July and the Federal Reserve has its sights set on August data

The unemployment rate in the united states went up to 4.3% in July. The central bank is now awaiting the August figure, which will be released on Friday. The market expects a slight drop to 4.2%.

The Fed to meet in less than 15 days to decide on interest ratesand the market expects a cut from its current levels, the highest in two decades.

The Fed has a dual mandate from Congress: to contain inflation and support the labor market

The Fed said economic activity grew “slightly” in three of its 12 regions, and noted that more and more districts are reporting “stable or declining activity”.

Income growth was “modest” overall, with consumer spending falling slightly in most regions, the agency said.

As for inflation, the Fed reported that prices rose “modestly.”