In August, job growth in the US reached 142 thousand, slightly below expectations (consensus of 165 thousand and Commerzbank’s forecast of 150 thousand), notes Dr. Christoph Balz, Senior Economist at Commerzbank.
The labor market remains a cause for concern
“The US labor market showed only modest recovery in August following the disappointing July report, with 142 thousand new jobs created and the unemployment rate dropping to 4.2%. However, job gains in June and July were revised downward by a total of 86 thousand.”
“This continues to make the labor market a concern. The Federal Reserve is expected to cut interest rates on September 18, but this report does not clearly indicate whether policymakers will opt for a 25 or 50 basis point reduction.”
