The US labor market shows signs of easing as job openings decline for the third consecutive month, worker quits decrease, and layoffs increase, indicating a more balanced state, according to the Bureau of Labor Statistics.
U.S. job growth is slowing down but remains steady, with the unemployment rate settling at 3.5% in July and predictions that the August jobs report will show similar results, although concerns remain regarding potential slowdowns and negative growth.
The August jobs report is highly anticipated as investors assess the health of the labor market amidst rising interest rates and inflation, with projections indicating an increase in hiring and a steady unemployment rate, but potential disruptions from ongoing strikes and bankruptcies could affect the data. The report is closely watched by the Federal Reserve for signs of labor market softening as they grapple with inflation, and while the labor market has remained tight, there are indications of a gradual slowdown. Job openings have decreased, along with resignations, pointing to a labor market that is cooling.
US labor market remains strong despite signs of better balance, with future interest rate decisions dependent on incoming data, says Federal Reserve Bank of Cleveland President Loretta Mester.
Employers added 187,000 jobs in August, resulting in a modest pickup in the job market, with industries such as health care, hospitality, and construction leading in job growth, while the unemployment rate rose to 3.8% due to more people re-joining the workforce, according to the Labor Department.
The U.S. jobs market remains steady as two different sources, ADP and the Bureau of Labor Statistics (BLS), provide varying estimates of how many workers were hired in a given month, leading to uncertainty for Federal Reserve officials monitoring the labor market.
The jobs market is currently in a relatively benign position, with unemployment rates and wage growth neither extremely high nor low, but leading indicators suggest a potential rise in unemployment and a continued deceleration of wage growth in the coming quarters.
