U.S. Adds 142K Jobs in August as Labor Market Continues to Cool
The U.S added 142,000 jobs in August, down slightly from an expected 161,000, while the unemployment rate dropped to 4.2% from 4.3% the previous month, the Bureau of Labor Statistics (BLS) reported.
Both the July and June data were revised lower to 89,000 from 114,000 and 61,000 to 118,000, respectively. Following these revisions, employment in June and July is 86,000 lower than previously reported. It also implies that four consecutive job releases have been revised lower, as have six of the previous seven.
The Federal Reserve is widely expected to cut interest rates at its meeting on September 17-18, its first cut since early 2020. The question remains whether it will be 25 basis points or an ambitious 50 basis points. The market continues to price in around 100 to 125 basis points of interest rate cuts by year’s end, however today’s report may not be sufficient to settle the issue.
