US Labor Market Rebounds in August Amid TPS-Related Job Losses

The US labor market is expected to rebound in August after a decline in July, according to a Reuters report. The anticipated recovery follows a reversal of local government education's drag on payrolls. However, job losses related to the termination of Temporary Protected Status (TPS) for Haitian immigrants may limit the rebound.

Economists predict that nonfarm payrolls will increase by 56,000 jobs in August after a decline of 23,000 in July. This estimate is based on a Reuters survey of economists, with estimates ranging from a loss of 25,000 to a gain of 121,000.

Michael Gapen, chief economist at Morgan Stanley, estimated a 15,000 drag on payrolls from the revocation of TPS, but noted it could be much larger, as TPS-affected Haitians account for roughly 160,000 of national payrolls.