US jobs report seen backing Warsh view
US payroll growth is expected to remain steady in August, supporting the Federal Reserve's focus on inflation and potential interest rate hikes. Fed Chairman Kevin Warsh has indicated that the labor market remains healthy despite softer job gains.
Why it matters
Economic data and Fed policy signals are critical for investors and the broader US economy as the central bank balances employment and inflation mandates.
WASHINGTON: US payrolls growth got back on track in August, consistent with general steadiness in the labour market that’s helping the Federal Reserve (Fed) focus more intently on its battle with inflation.
Economists estimate the monthly jobs report from the Bureau of Labour Statistics (BLS) this coming Friday will show a 55,000 increase in payrolls after an unexpected dip in July employment. Such a result would be broadly in line with average job growth this year.
The unemployment rate, based on a survey of households rather than establishments, is seen holding at 4.1%.
Steady labor demand combined with limited layoffs are “consistent with full employment”, Fed chairman Kevin Warsh (pic) said last Friday at the US central bank’s annual conference in Wyoming.
The stable job market has fuelled consumer spending and allowed the broader economy to forge ahead.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in