Drumroll please… 🥁🥁🥁
Economists, business owners, government officials, and investors alike are holding their breath for the Bureau of Labor Statistics August jobs report that’s set to come out tomorrow morning. 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:
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Nonfarm payrolls
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Unemployment rate
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Average hourly earnings, month over month
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Average hourly earnings, year over year
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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.
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