By David Lawder
RALEIGH, North Carolina (Multibagger) - U.S. Treasury Secretary Janet Yellen reassured investors on Thursday that the U.S. labor market remains robust, even as job growth has decelerated in recent months.
Yellen made these comments during a press conference in North Carolina, highlighting that July's unemployment rate of 4.3% is still historically low.
Investors are eagerly awaiting the Labor Department's August jobs report, expected to show a slight decrease in the unemployment rate to 4.2%.
However, Thursday's private payrolls data painted a less optimistic picture, revealing the slowest pace of hiring in 3-1/2 years in August, with downward revisions to the previous month's figures.
"Despite the slowdown in job creation, the pace is sufficient to accommodate new entrants into the labor force," Yellen remarked, emphasizing that the economy is still growing at a brisk pace of 3% in the second quarter, supported by strong consumer and investment spending.
"Overall, I believe we have a strong and healthy economy with a robust labor market," Yellen concluded.
Analysis:
Janet Yellen's comments provide insight into the current state of the U.S. labor market and economy. Despite a slight slowdown in job creation, the overall economic indicators remain positive, with solid growth and healthy consumer and investment spending. Investors should monitor the upcoming jobs report closely to gauge the impact on financial markets and make informed investment decisions.