Jobs Report has Big Interest

Drumroll please… 🥁🥁🥁

Economists, business owners, government officials, and investors alike are holding their breath for the Bureau of Labor Statistics August jobs report.. Why? Because the data contained will likely have a big impact on the size of the upcoming interest rate cut from the Federal Reserve. July’s report brought bad news, with 61,000 less job openings than expected (114,000 added), and a rise in the unemployment rate, bringing it up to 4.3%.

Go deeper: Key labor market indicators to keep an eye on will be:

• Nonfarm payrolls

• Unemployment rate

• Average hourly earnings, month over month

• Average hourly earnings, year over year

• Average weekly hours worked

These numbers all showed a negative turn in July, and everyone is waiting to see if August’s data will show the labor market continuing to cool drastically, or if July was more of a fluke for labor market weakness.

Why it matters: Many people are speculating that if August’s numbers follow along with the cooling trends demonstrated in July, the Fed will implement a more significant rate cut at their meeting later this month.