Why the August jobs report of growing unemployment is 'the best news'?

By The Exchange Team

According to data released by the Labor Department on Friday, the month of August saw a rise in the unemployment rate to 3.7%.

But Labor economists acknowledge "positive" explanations for the increase in unemployment, despite lingering recession fears.

According to Julia Pollak, chief economist of ZipRecruiter, a rising unemployment rate was "the best news in this report."

In light of this, analysts believe that an increase in the unemployment rate is not a cause for concern in the short run.

With continuous employment growth and plenty of openings, people won't be unemployed for long.

It's also great news for firms that are having difficulty hiring because they now have a larger pool of candidates to pick from.

Labor force participation hasn't fully recovered from the pandemic-era decline, although in August it tied for the top level since Covid-19.