Economists anticipate that the August employment report will reflect continued sluggishness in the US labor market, reinforcing expectations for an upcoming Federal Reserve rate reduction. According to the median forecast from a Bloomberg survey, nonfarm payrolls likely increased by 75,000 last month, marking the fourth consecutive month with gains under 100,000. This trend points to a notable slowdown in hiring compared to earlier in the year. Additionally, the jobless rate is projected to climb to 4.3%, the highest it has been since 2021. Persistent softness in employment data strengthens the argument for monetary easing, as policymakers aim to support economic momentum amid cooling labor demand.
— news from Bloomberg.com
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Economists Expect Another Tepid US Jobs Report, Supporting Rate Cut
Economists expect Friday’s employment report to extend the weakest stretch of US job growth since the pandemic, likely locking in a Federal Reserve interest-rate cut. n nNonfarm payrolls probably grew 75,000 in August, according to the median estimate in a Bloomberg survey of economists, which would mark a fourth straight month of job growth below 100,000. The unemployment rate is seen rising to 4.3% — the highest level since 2021.