Analysts said the latest figures kept the Federal Reserve on track for a rate cut at its meeting this month, but would do little to resolve questions about the direction of the US economy or how big a cut it should make.
“Rarely has there been such a make or break number – unfortunately, today’s jobs report doesn’t entirely resolve the recession debate,” said Seema Shah, chief global strategist at Principal Asset Management.
The job gains in August, although below estimates, were higher than July, when a slowdown sparked fears and prompted several days of stock market turmoil.
Construction and health care firms led the hiring last month, while manufacturers and retailers got rid of roles.
Ms Shah said the data in the report was mixed, but contained enough worrying signs that the Fed should make a bigger cut.
“On balance, with inflation pressures subdued, there is no reason for the Fed not to err on the side of caution and frontload rate cuts,” she said.
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