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Breaking: August Nonfarm Payrolls Increase by 142K, Falling Short of Projections


Nonfarm Payrolls in the United States rose by 142,000 in August, falling short of the market expectation of 160,000, according to the US Bureau of Labor Statistics (BLS). This increase followed a revised July figure of 89,000 jobs, indicating a continuing slowdown in job growth.


The Unemployment Rate edged lower to 4.2%, while the Labor Force Participation rate remained steady at 62.7%. Wage growth, measured by Average Hourly Earnings, saw an uptick to 3.8% year-over-year from 3.6% in July, signaling steady inflationary pressure.

The weaker-than-expected payroll figures raised concerns about the health of the labor market, particularly in private sector job growth, which only added 118,000 jobs compared to the expected 139,000. Manufacturing jobs saw a decline of 24,000, further highlighting vulnerabilities in the US job market. Despite the job market’s softening, government employment increased by 24,000 positions, providing some stability.


In the wake of the report, the US Dollar Index dropped 0.3% to 100.75, reflecting investor sentiment that the Federal Reserve might be more cautious in adjusting interest rates. With the labor market showing signs of slowing, there is heightened speculation that the Fed could lean toward more gradual rate cuts in its upcoming policy decisions.

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Market Alleys
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