July Jobs Numbers Expected to Show Little Improvement Amid Inflation Concerns

The upcoming July jobs numbers are expected to show little improvement, with economists predicting a gain of just 83,000 in nonfarm payrolls and an unchanged unemployment rate of 4.2%.

This would follow a slow June, which saw a gain of only 57,000 jobs, and is likely to be met with caution by Federal Reserve officials who are concerned about inflation.

While the headline numbers will provide some insight into labor market health, economists will also be looking at participation in the labor force, wage growth, and the sectors driving the economy now.

Fed Governor Lisa Cook noted that the 'low-hire, low-fire' equilibrium is affecting new entrants to the job market, particularly hard, and may restrain worker sentiment for good reason.