Employers added 151,000 jobs in August, a modest gain after an increase of 275,000 in July, the most in eight months, and 271,000 in June.
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“This should cool speculation about a September hike”, he said.
“It appears that the funds rate should be significantly higher than it is now”, he said in the speech. Since the gauge reached a record in mid-August, it’s been stuck in neutral amid Fed rate-hike speculation and lackluster economic data, including a reading yesterday showing manufacturing activity contracted last month.
If a relatively tepid pace of job growth keeps the Fed on the sidelines for longer, the continuation of ultra-low rates could sustain the economy’s expansion, some analysts suggested.
Center for American Progress Economist Kate Bahn released the following statement today on the August 2016 employment situation figures from the U.S. Bureau of Labor Statistics.
“It is more likely that payrolls will come in below 200,000, however, which would probably persuade the Fed to hold off on the next rate hike until December”, Capital Economics Chief Economist Paul Ashworth said in response to ADP’s prediction on Wednesday.
Raisa Rickie waits in line to apply for a job with Aldi at a job fair in Miami Lakes, Florida, recently.
Among the major worker groups, unemployment rates in August were little changed for adult men (4.5%), adult women (4.5%), teenagers (15.7%), whites (4.4%), blacks (8.1%), Asians (4.2%) and Hispanics (5.6%). The Institute for Supply Management said US manufacturing contracted in August for the first time in six months.
The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, will also be scrutinized for signs of when wage growth will accelerate.
Average hourly earnings rose 0.1 per cent from a month earlier to $25.73, following a 0.3 per cent increase in the previous month.
Economists had forecast payrolls increasing 180,000 last month and the unemployment rate being 4.8%.
Last week, Fed Chair Janet Yellen said she believes the case for raising rates has strengthened in recent months but stressed that policy decisions always depend on the degree to which incoming data continues to confirm the central bank’s outlook. “With productivity falling in Q2 alongside weak investment, the Fed may delay pulling the trigger on rate rises, despite strong data elsewhere in the economy”.
“The report thus leaves the Fed on track for a rate hike in December”. That figure barely rose in the first four years of the recovery but is now up from 53 percent in 2014.
USA employers add 151,000 jobs in Aug, below expectations * Data fails to boost expectations for September.
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Consumers are more confident and have been spending at a steady clip.
