Labor and Inflation
Why this is rated elevated
Annual CPI inflation remains above 3% and job growth has slowed, while unemployment is still low by historical standards.
Elevated: Some indicators are outside normal ranges or a known risk is developing. Core functions are unaffected. Methodology
What is this?
This tracks jobs and how fast prices go up.
How it's doing: Still working, but something is a little off.
About this area
Prices and jobs are the two parts of the Fed's mandate and the most direct measures of household economic conditions.
Indicators
Latest readings. Changes are shown without judgment of whether up or down is better.
| Indicator | Latest |
|---|---|
CPI inflation (12-month) Source: U.S. Bureau of Labor Statistics | 3.1% |
Unemployment rate Source: U.S. Bureau of Labor Statistics | 4.4% |
Nonfarm payrolls (monthly change) Source: U.S. Bureau of Labor Statistics | 92K jobs |
Real GDP growth (annualized) Source: U.S. Bureau of Economic Analysis | 1.6% |
Charts
Timeline of developments
August CPI rises 0.3% month over month
Shelter and services costs continued to drive the increase; energy prices declined slightly.
Source: U.S. Bureau of Labor StatisticsPayroll growth slows in August
Employers added fewer jobs than the three-month average, and prior months were revised down.
Source: U.S. Bureau of Labor Statistics
Sources and citationsWhere this info comes from
- 1.Consumer Price Index news release
U.S. Bureau of Labor Statistics. Accessed Sep 27, 2026.
- 2.Employment Situation news release
U.S. Bureau of Labor Statistics. Accessed Sep 27, 2026.
- 3.Gross Domestic Product
U.S. Bureau of Economic Analysis. Accessed Sep 27, 2026.
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