Investing Insights: US Nonfarm Payrolls Report Preview for September 2021
As the latest US nonfarm payrolls report is set to be released this week, economists are anticipating an addition of 144,000 jobs in September, a slight increase from the previous month's 142,000. The unemployment rate is expected to remain steady at 4.2%, matching August's level.
In August, the payrolls numbers fell short of expectations, with a rise from a revised reading of 89,000. The jobless rate also decreased slightly from 4.3%. This downward trend in labor demand has been recognized by Federal Reserve officials as a significant factor in their recent decision to implement a 50-basis point interest rate reduction.
Analysts at ING have highlighted the importance of the jobs market in determining future interest rate cuts, especially as inflation appears to be easing. The upcoming nonfarm payrolls report could influence calls for additional rate cuts, particularly if the unemployment rate rises and payrolls fall below expectations.
Federal Reserve Chair Jerome Powell has indicated that future interest rate cuts will likely be more gradual, emphasizing that the path of borrowing costs is not predetermined. Despite the recent rate reduction, Powell expressed confidence in the strength of the labor market and its ability to support economic growth.
The Job Openings and Labor Turnover Survey showed a slight increase in job openings in August, suggesting some resilience in labor demand. This data could provide insight into the overall health of the job market in the third quarter.
Overall, the upcoming nonfarm payrolls report will be closely watched by investors and analysts for its impact on the economy and financial markets. Stay tuned for the latest updates and analysis on this important economic indicator.