{"id":4183,"date":"2023-08-31T20:47:46","date_gmt":"2023-08-31T20:47:46","guid":{"rendered":"https:\/\/prosfunds.com\/news\/august-jobs-report-likely-to-point-to-slowing-labor-market\/"},"modified":"2023-08-31T20:47:49","modified_gmt":"2023-08-31T20:47:49","slug":"august-jobs-report-likely-to-point-to-slowing-labor-market","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=4183","title":{"rendered":"August jobs report likely to point to slowing labor market"},"content":{"rendered":"
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All eyes will be on the August jobs report when it is released Friday morning as investors look for clues about the labor market’s health in the face of higher interest rates and sticky inflation.<\/p>\n

The U.S. Department of Labor’s high-stakes August payroll report<\/u>, due at 8:30 a.m. ET, is projected to show that hiring increased by 170,000 last month and that the unemployment rate held steady at 3.5%, according to a median estimate by Refinitiv economists.<\/p>\n

That would mark a drop from the 187,000 gain in July<\/u> and the 312,000 monthly average recorded over the previous 12 months. However, it is slightly above the average pre-pandemic monthly increase.<\/p>\n

WORKERS NOW DEMANDING NEARLY $80K TO START NEW JOB<\/u><\/strong><\/p>\n

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“The August jobs report will likely bring more evidence that the labor market is gradually cooling,” said EY chief economist Gregory Daco.\u00a0<\/p>\n

Daco said he anticipates some “noisy data” on Friday, thanks to the ongoing actors and writers strike that has shut down most Hollywood film and television productions, as well as the bankruptcy of trucking giant Yellow.<\/p>\n

“We estimate that these two factors could potentially pose a cumulative drag on payrolls worth around 30,000 to 40,000 jobs in August,” he said.<\/p>\n

JOB OPENINGS DROP MORE THAN EXPECTED IN JULY TO 2-YEAR LOW<\/strong><\/p>\n

The Federal Reserve<\/u> is closely watching the report for evidence that the labor market is finally softening after months of surprisingly solid job gains as policymakers try to wrestle inflation under control. Although the consumer price index has cooled from a peak of 9.1% in June 2022, it remains well above the Fed’s preferred 2% target despite 11 straight interest rate hikes.<\/p>\n