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Key Takeaways
- A government report released Friday could show August was another lackluster month for job growth. Economists expect U.S. employers added just 75,000 jobs during that time.
- Anything less than a surprising surge in job growth could reinforce expectations that the Federal Reserve will cut interest rates in September to boost the job market and prevent a surge of unemployment.
- Reports on the job market from private companies could get extra attention this month after last month’s report spurred questions about the quality and reliability of government data.
The job market continued to move slowly in its recent low-hiring, low-firing pattern, if forecasts are accurate.
Economists predict that a report on Friday from the Bureau of Labor Statistics will show the economy continuing its recent trend of relatively low job growth.Employers likely added 75,000 jobs in August, a slight increase from the weak 73,000 added in july, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.
They also expect the unemployment rate to rise to 4.3%,slightly higher than the previous month’s 4.2%.
friday’s jobs report comes at a crucial time for the economy and the outlook for interest rates. The July report caused economic and political shockwaves by showing a sharp slowdown in job growth and steep downward revisions to previous job growth estimates.