Us Economy Added More Jobs In August

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Us Economy Added More Jobs In August

US Economy Added 187K Jobs In August, Unemployment Rate Up To 3.8%

The NFP (Non-Farm Payrolls) for August is finally here and is showing a healthy picture of the US labor market. As per the details, more jobs were added during the last month, but the unemployment rate also went up.

Similarly, the wage growth also remained moderate, which is a sign that the labor market is not as strong as it was a few months ago. This has raised the expectations that the central bank will decide not to introduce a new rate hike.

Overall, around 187,000 (187K) jobs were added to the US economy in August, while the estimate was for 170,000 jobs only. In addition, July's job data was also revised from 187K to around 157K only.

Unemployment Rate On The Rise

The report also showed that the unemployment rate in the USA is now at 3.8%, while it was around 3.5% just a month ago. So during August, the unemployment rate went by 0.3%, which paints a troubling picture of the US economy.

After the data release, the S&P 500 gained 0.6%, while the 10-year bond yields went down by 5 bps and were seen near 4.079%. Furthermore, the DXY (Dollar Index) shed 0.3% of its value after the news.

According to one expert, the NFP report was good on the surface, but the same can't be said about the details. For starters, the downward revision in the job numbers for June & July can't be ignored. They added that the wage growth has also gone through a slowdown which is consistent with the pace of inflation.

This means that the Fed managed to achieve a soft landing without even realizing it. But as the Fed continued with its actions, we may be seeing a hard landing of the US economy.

For the next few months, the NFP data might be a little messy as many worker unions are planning strikes. If this happens, we will not see as much accurate data as we have seen in the last few months.

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