Fed Faces Hawkish Labor Market Data Ahead of Rate Decision
The US labor market showed stability in August, with a slight increase in unemployment but a substantial addition of 162,000 non-farm jobs. This brings the three-month average growth to +71,000 jobs per month, significantly above estimates of breakeven payroll growth.
Local government education employment accounted for about a quarter of this month's growth, but experts caution that seasonal adjustments can be volatile during this time of year.
The labor market's resilience is a key consideration for the Federal Reserve ahead of its September meeting. While moderate inflation remains a concern, the Fed may still opt to raise interest rates if it feels there is no significant downside to doing so, given the declining unemployment rate and stable employment numbers.