Tepid Job Data Gives Fed Time to Pause

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U.S. payrolls posted their fourth-straight tepid gain last month and the jobless rate spiked higher, likely giving Federal Reserve officials all the evidence they need to pause their two-year tightening campaign at next week’s meeting of the Federal Open Market Committee, the Wall Street Journal reports.


Nonfarm payrolls grew 113,000 last month after climbing 124,000 in June and 100,000 in May, the Labor Department said Friday. Previous estimates showed a 121,000-job increase in June and a 92,000 gain in May.


Stock and bond markets rallied in the wake of the payroll report on hopes for a Fed pause.


In a further sign of labor market softening, the unemployment rate climbed last month to 4.8% — matching the highest level since December 2005 — from 4.6% in June. That 0.2-point rise is the fastest since October 2001, according to the Labor Department.



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