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Sep 4, 8:11 PM
U.S. nonfarm payrolls rose by 162,000 in August, beating expectations and rebounding sharply from July’s weak reading. The unemployment rate increased 5 basis points to 4.14%, while labor-force participation rose 0.2 percentage points to 61.6%.
Leisure and hospitality added 62,000 jobs, local government education gained 42,000, and healthcare and construction remained strong. Following upward revisions to June and July, three-month average payroll growth reached 71,000, up from 20,000 before Friday’s report.
Goldman Sachs estimates underlying job creation at 53,000, versus just 5,000 previously. Evercore said the stronger payrolls increase confidence that the labor market can withstand potential Fed tightening, but are not decisive for September’s policy decision. Next week’s inflation data will remain key, with employment strength potentially tipping the balance if inflation readings are borderline.
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