Nonfarm Payrolls rise by 22,000 in August vs. 75,000 expected
The U.S. economy added fewer jobs than anticipated in August, possibly bolstering the case for the Federal Reserve to slash interest rates at its next policy meeting later this month.
Data from the Labor Department’s Bureau of Labor Statistics showed that nonfarm payrolls came in at 22,000 last month, down from an upwardly-revised level of 79,000 in July. Economists had estimated that the figure would stand at 75,000.
An uptick in health care jobs was partially offset by losses in the U.S. government, in the latest sign of a push by the White House to lower the size of the federal workforce. Roles were also shed in mining, quarrying, and oil and gas extraction, the BLS noted.
Meanwhile, the unemployment rate edged higher to 4.3%, up from 4.2% in the prior month and in line with forecasts. Average hourly earnings expansion slowed to 3.7%, also matching projections.
Friday’s much-anticipated report comes as markets are widely betting that the Fed will choose to ratchet down borrowing costs at its September 16-17 gathering. According to CME’s FedWatch Tool, investors are pricing in about a 100% chance of 25-basis point rate reduction from the Fed’s current target range of 4.25% to 4.5%.
Fed officials are facing pressures to both pillars of their mandate -- keeping price growth stable and promoting maximum employment -- although recent comments from policymakers have indicated that supporting the labor market may be their current priority.
Source : Investing.com
