Drumroll please… 🥁🥁🥁
Economists, business owners, government officials, and investors alike are holding their breath for the Bureau of Labor Statistics August jobs report.. Why? Because the data contained will likely have a big impact on the size of the upcoming interest rate cut from the Federal Reserve. July’s report brought bad news, with 61,000 less job openings than expected (114,000 added), and a rise in the unemployment rate, bringing it up to 4.3%.
Go deeper: Key labor market indicators to keep an eye on will be:
Nonfarm payrolls
Unemployment rate
Average hourly earnings, month over month
Average hourly earnings, year over year
Average weekly hours worked
These numbers all showed a negative turn in July, and everyone is waiting to see if August’s data will show the labor market continuing to cool drastically, or if July was more of a fluke for labor market weakness.
Why it matters: Many people are speculating that if August’s numbers follow along with the cooling trends demonstrated in July, the Fed will implement a more significant rate cut at their meeting later this month.
Comments