The world’s largest economy added 315,000 jobs in August, in line with economists’ expectations. That compares with a downwardly revised 526,000 jobs created in July, which had helped stabilize the unemployment rate at a multi-decade low. The number of jobs added in June was also revised up to 293,000, from nearly 400,000. Despite August’s gains, the unemployment rate rose 0.2 percentage points to 3.7%. As the size of the labor force swelled by 786,000, the number of people looking for work but still unemployed rose by 344,000. The labor force participation rate, which tracks the share of Americans who are either employed or looking for work, rose to 62.4 percent as a result, but remains below the pre-coronavirus pandemic level. The data, released by the Bureau of Labor Statistics on Friday, underscored that the labor market remains robust even as the Fed has embarked on the most aggressive monetary tightening since the early 1980s. “I think the Fed will like the fact that the labor force participation rate has picked up, but the bigger issue for them remains that 300,000 jobs a month is still too fast,” said Ajay Rajadhyaksha, global head of research at Barclays .
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Faced with the highest levels of inflation in four decades, the central bank is debating how high to raise interest rates and how long to keep them at a level that actively curbs economic activity. In four months, the target range for the federal funds rate has jumped from near zero to between 2.25 percent and 2.50 percent, and many officials believe rates should rise closer to or above 4 percent sometime moment to successfully tame inflation. Now, the Fed is faced with the question of whether to extend its streak of 0.75 percentage point rate hikes for one more meeting later this month, or slow down and implement a half-point adjustment at the meeting of in September. “They clearly have a lot of work ahead of them,” said Robert Dent, senior U.S. economist at Nomura. “[But] I think they know they can’t keep hiking 75 basis points forever.” All eyes are on the next inflation report due later this month, but after the Fed enters a planned “blackout” period where it limits its public comments. Dent said the report is “ultimately the most important input for the Fed at this point in its near-term deliberations.” Most economists believe a rate hike of 0.75 percentage points in September is firmly on the table, especially in light of the extremely hawkish message sent by Chairman Jay Powell last month that the central bank will “hold on” until restore price stability. Powell also admitted that the process would likely involve a sustained period of lower growth, higher unemployment and “some pain” for households and businesses. For Veronica Clark, an economist at Citigroup, she said a third straight hike of 0.75 percentage points later this month would help validate Powell’s message and underline the Fed’s commitment to neutralizing price pressures. “There’s no obvious sign, certainly not in the inflation data or the labor market data that tells you that we’re going to run with a consistently slower underlying rate of inflation,” he said. “In that sense you just have to be more aggressive and if you’re given the option to do one again [0.75 percentage point move]why not take it?’
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Economists had expected the rate of monthly job growth to slow, especially as most of the losses caused by the pandemic have been recovered. But employers are still grappling with widespread labor shortages, meaning they must compete fiercely to retain workers and hire new ones. Data released earlier this week showed there were still about two vacancies per unemployed worker, suggesting little easing of the extremely tight labor market. As a result, national wages have risen sharply, sparking concerns about a feedback loop where companies are forced to charge more for their products and services to cover those costs, leading workers to demand even higher pay. Average hourly earnings rose again in August, with wages up 0.3 percent for the month, or 5.2 percent on a year-over-year basis. The number of professional and business jobs increased by 68,000 and health care employment increased by 48,000. Jobs in retail and manufacturing also rose, while those in the leisure and hospitality industry showed little change. The same was true for the construction and transportation sectors.
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
In financial markets, the yield on the two-year U.S. Treasury note, which is sensitive to interest rate expectations, fell 0.11 percentage points to 3.41 percent, having traded around 3.48 percent shortly before the release of the data on jobs. The S&P 500 gave up gains from earlier in the session to be almost flat in midday trading in New York. Additional reporting by Kate Duguid in New York
title: “Slower Us Job Growth Offers Some Relief For The Fed Klmat” ShowToc: true date: “2022-11-05” author: “Dale Figueroa”
The world’s largest economy added 315,000 jobs in August, in line with economists’ expectations. That compares with a downwardly revised 526,000 jobs created in July, which had helped stabilize the unemployment rate at a multi-decade low. The number of jobs added in June was also revised up to 293,000, from nearly 400,000. Despite August’s gains, the unemployment rate rose 0.2 percentage points to 3.7%. As the size of the labor force swelled by 786,000, the number of people looking for work but still unemployed rose by 344,000. The labor force participation rate, which tracks the share of Americans who are either employed or looking for work, rose to 62.4 percent as a result, but remains below the pre-coronavirus pandemic level. The data, released by the Bureau of Labor Statistics on Friday, underscored that the labor market remains robust even as the Fed has embarked on the most aggressive monetary tightening since the early 1980s. “I think the Fed will like the fact that the labor force participation rate has picked up, but the bigger issue for them remains that 300,000 jobs a month is still too fast,” said Ajay Rajadhyaksha, global head of research at Barclays .
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Faced with the highest levels of inflation in four decades, the central bank is debating how high to raise interest rates and how long to keep them at a level that actively curbs economic activity. In four months, the target range for the federal funds rate has jumped from near zero to between 2.25 percent and 2.50 percent, and many officials believe rates should rise closer to or above 4 percent sometime moment to successfully tame inflation. Now, the Fed is faced with the question of whether to extend its streak of 0.75 percentage point rate hikes for one more meeting later this month, or slow down and implement a half-point adjustment at the meeting of in September. “They clearly have a lot of work ahead of them,” said Robert Dent, senior U.S. economist at Nomura. “[But] I think they know they can’t keep hiking 75 basis points forever.” All eyes are on the next inflation report due later this month, but after the Fed enters a planned “blackout” period where it limits its public comments. Dent said the report is “ultimately the most important input for the Fed at this point in its near-term deliberations.” Most economists believe a rate hike of 0.75 percentage points in September is firmly on the table, especially in light of the extremely hawkish message sent by Chairman Jay Powell last month that the central bank will “hold on” until restore price stability. Powell also admitted that the process would likely involve a sustained period of lower growth, higher unemployment and “some pain” for households and businesses. For Veronica Clark, an economist at Citigroup, she said a third straight hike of 0.75 percentage points later this month would help validate Powell’s message and underline the Fed’s commitment to neutralizing price pressures. “There’s no obvious sign, certainly not in the inflation data or the labor market data that tells you that we’re going to run with a consistently slower underlying rate of inflation,” he said. “In that sense you just have to be more aggressive and if you’re given the option to do one again [0.75 percentage point move]why not take it?’
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Economists had expected the rate of monthly job growth to slow, especially as most of the losses caused by the pandemic have been recovered. But employers are still grappling with widespread labor shortages, meaning they must compete fiercely to retain workers and hire new ones. Data released earlier this week showed there were still about two vacancies per unemployed worker, suggesting little easing of the extremely tight labor market. As a result, national wages have risen sharply, sparking concerns about a feedback loop where companies are forced to charge more for their products and services to cover those costs, leading workers to demand even higher pay. Average hourly earnings rose again in August, with wages up 0.3 percent for the month, or 5.2 percent on a year-over-year basis. The number of professional and business jobs increased by 68,000 and health care employment increased by 48,000. Jobs in retail and manufacturing also rose, while those in the leisure and hospitality industry showed little change. The same was true for the construction and transportation sectors.
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
In financial markets, the yield on the two-year U.S. Treasury note, which is sensitive to interest rate expectations, fell 0.11 percentage points to 3.41 percent, having traded around 3.48 percent shortly before the release of the data on jobs. The S&P 500 gave up gains from earlier in the session to be almost flat in midday trading in New York. Additional reporting by Kate Duguid in New York
title: “Slower Us Job Growth Offers Some Relief For The Fed Klmat” ShowToc: true date: “2022-11-24” author: “Vernon Drath”
The world’s largest economy added 315,000 jobs in August, in line with economists’ expectations. That compares with a downwardly revised 526,000 jobs created in July, which had helped stabilize the unemployment rate at a multi-decade low. The number of jobs added in June was also revised up to 293,000, from nearly 400,000. Despite August’s gains, the unemployment rate rose 0.2 percentage points to 3.7%. As the size of the labor force swelled by 786,000, the number of people looking for work but still unemployed rose by 344,000. The labor force participation rate, which tracks the share of Americans who are either employed or looking for work, rose to 62.4 percent as a result, but remains below the pre-coronavirus pandemic level. The data, released by the Bureau of Labor Statistics on Friday, underscored that the labor market remains robust even as the Fed has embarked on the most aggressive monetary tightening since the early 1980s. “I think the Fed will like the fact that the labor force participation rate has picked up, but the bigger issue for them remains that 300,000 jobs a month is still too fast,” said Ajay Rajadhyaksha, global head of research at Barclays .
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Faced with the highest levels of inflation in four decades, the central bank is debating how high to raise interest rates and how long to keep them at a level that actively curbs economic activity. In four months, the target range for the federal funds rate has jumped from near zero to between 2.25 percent and 2.50 percent, and many officials believe rates should rise closer to or above 4 percent sometime moment to successfully tame inflation. Now, the Fed is faced with the question of whether to extend its streak of 0.75 percentage point rate hikes for one more meeting later this month, or slow down and implement a half-point adjustment at the meeting of in September. “They clearly have a lot of work ahead of them,” said Robert Dent, senior U.S. economist at Nomura. “[But] I think they know they can’t keep hiking 75 basis points forever.” All eyes are on the next inflation report due later this month, but after the Fed enters a planned “blackout” period where it limits its public comments. Dent said the report is “ultimately the most important input for the Fed at this point in its near-term deliberations.” Most economists believe a rate hike of 0.75 percentage points in September is firmly on the table, especially in light of the extremely hawkish message sent by Chairman Jay Powell last month that the central bank will “hold on” until restore price stability. Powell also admitted that the process would likely involve a sustained period of lower growth, higher unemployment and “some pain” for households and businesses. For Veronica Clark, an economist at Citigroup, she said a third straight hike of 0.75 percentage points later this month would help validate Powell’s message and underline the Fed’s commitment to neutralizing price pressures. “There’s no obvious sign, certainly not in the inflation data or the labor market data that tells you that we’re going to run with a consistently slower underlying rate of inflation,” he said. “In that sense you just have to be more aggressive and if you’re given the option to do one again [0.75 percentage point move]why not take it?’
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Economists had expected the rate of monthly job growth to slow, especially as most of the losses caused by the pandemic have been recovered. But employers are still grappling with widespread labor shortages, meaning they must compete fiercely to retain workers and hire new ones. Data released earlier this week showed there were still about two vacancies per unemployed worker, suggesting little easing of the extremely tight labor market. As a result, national wages have risen sharply, sparking concerns about a feedback loop where companies are forced to charge more for their products and services to cover those costs, leading workers to demand even higher pay. Average hourly earnings rose again in August, with wages up 0.3 percent for the month, or 5.2 percent on a year-over-year basis. The number of professional and business jobs increased by 68,000 and health care employment increased by 48,000. Jobs in retail and manufacturing also rose, while those in the leisure and hospitality industry showed little change. The same was true for the construction and transportation sectors.
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
In financial markets, the yield on the two-year U.S. Treasury note, which is sensitive to interest rate expectations, fell 0.11 percentage points to 3.41 percent, having traded around 3.48 percent shortly before the release of the data on jobs. The S&P 500 gave up gains from earlier in the session to be almost flat in midday trading in New York. Additional reporting by Kate Duguid in New York
title: “Slower Us Job Growth Offers Some Relief For The Fed Klmat” ShowToc: true date: “2022-12-06” author: “Alex Haynes”
The world’s largest economy added 315,000 jobs in August, in line with economists’ expectations. That compares with a downwardly revised 526,000 jobs created in July, which had helped stabilize the unemployment rate at a multi-decade low. The number of jobs added in June was also revised up to 293,000, from nearly 400,000. Despite August’s gains, the unemployment rate rose 0.2 percentage points to 3.7%. As the size of the labor force swelled by 786,000, the number of people looking for work but still unemployed rose by 344,000. The labor force participation rate, which tracks the share of Americans who are either employed or looking for work, rose to 62.4 percent as a result, but remains below the pre-coronavirus pandemic level. The data, released by the Bureau of Labor Statistics on Friday, underscored that the labor market remains robust even as the Fed has embarked on the most aggressive monetary tightening since the early 1980s. “I think the Fed will like the fact that the labor force participation rate has picked up, but the bigger issue for them remains that 300,000 jobs a month is still too fast,” said Ajay Rajadhyaksha, global head of research at Barclays .
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Faced with the highest levels of inflation in four decades, the central bank is debating how high to raise interest rates and how long to keep them at a level that actively curbs economic activity. In four months, the target range for the federal funds rate has jumped from near zero to between 2.25 percent and 2.50 percent, and many officials believe rates should rise closer to or above 4 percent sometime moment to successfully tame inflation. Now, the Fed is faced with the question of whether to extend its streak of 0.75 percentage point rate hikes for one more meeting later this month, or slow down and implement a half-point adjustment at the meeting of in September. “They clearly have a lot of work ahead of them,” said Robert Dent, senior U.S. economist at Nomura. “[But] I think they know they can’t keep hiking 75 basis points forever.” All eyes are on the next inflation report due later this month, but after the Fed enters a planned “blackout” period where it limits its public comments. Dent said the report is “ultimately the most important input for the Fed at this point in its near-term deliberations.” Most economists believe a rate hike of 0.75 percentage points in September is firmly on the table, especially in light of the extremely hawkish message sent by Chairman Jay Powell last month that the central bank will “hold on” until restore price stability. Powell also admitted that the process would likely involve a sustained period of lower growth, higher unemployment and “some pain” for households and businesses. For Veronica Clark, an economist at Citigroup, she said a third straight hike of 0.75 percentage points later this month would help validate Powell’s message and underline the Fed’s commitment to neutralizing price pressures. “There’s no obvious sign, certainly not in the inflation data or the labor market data that tells you that we’re going to run with a consistently slower underlying rate of inflation,” he said. “In that sense you just have to be more aggressive and if you’re given the option to do one again [0.75 percentage point move]why not take it?’
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
Economists had expected the rate of monthly job growth to slow, especially as most of the losses caused by the pandemic have been recovered. But employers are still grappling with widespread labor shortages, meaning they must compete fiercely to retain workers and hire new ones. Data released earlier this week showed there were still about two vacancies per unemployed worker, suggesting little easing of the extremely tight labor market. As a result, national wages have risen sharply, sparking concerns about a feedback loop where companies are forced to charge more for their products and services to cover those costs, leading workers to demand even higher pay. Average hourly earnings rose again in August, with wages up 0.3 percent for the month, or 5.2 percent on a year-over-year basis. The number of professional and business jobs increased by 68,000 and health care employment increased by 48,000. Jobs in retail and manufacturing also rose, while those in the leisure and hospitality industry showed little change. The same was true for the construction and transportation sectors.
You are viewing a snapshot of an interactive graphic. This is probably because you are offline or JavaScript is disabled in your browser.
In financial markets, the yield on the two-year U.S. Treasury note, which is sensitive to interest rate expectations, fell 0.11 percentage points to 3.41 percent, having traded around 3.48 percent shortly before the release of the data on jobs. The S&P 500 gave up gains from earlier in the session to be almost flat in midday trading in New York. Additional reporting by Kate Duguid in New York
