August job report is again significantly lower than expected.


August nonfarm payrolls drop to 142,000 vs the expected 165,000 with the unemployment rate rising to 4.2% meeting the expected 4.2%.

  • This job report is the worst August job growth since 2017
  • This is compounded by July's disappointing job report and unemployment rate.
  • Jerome Powell stated that the central bank does not seek or welcome further cooling in labor market conditions.
  • This report significantly increases the probability of the Fed cutting rates by at least 25 bp and further the chance of a 50 bp cut in this month's upcoming Fed meeting.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *