SEPTEMBER 9, 2024 – MODERATE JOBS REPORT, UNEMPLOYMENT RATE DECLINES
The Labor Department released August jobs numbers on Friday. The US economy added 142,000 new jobs last month, below expectations of 161,000, but still a solid number. Job numbers for June and July were also revised down, while the unemployment rate edged down to 4.2 percent from 4.3 percent in July. The data is weak enough to keep next week’s 25 bp rate decrease as a near certainty, but perhaps not enough to ensure a decrease of 50 bps in the Federal funds rate. Average hourly earnings in August rose by 0.4 percent for the month and 3.8 percent for the year, higher than estimates.
The Fed policymakers signaled on Friday they have noticed the cooling of the labor market and are ready to act before that trend accelerates. Their remarks have been seen as confirmation of a cut next week, and their being open to more cuts later this year if the job market keeps slowing.
The Fed has regular meetings set for November and December.