While the labor market in August is expected to have remained tight in the face of rate hikes to cool down inflationary pressures, Wall Street expects a rise in non-farm payrolls by 300,000. Average hourly earnings on a month-over-month basis are expected to rise by 0.4%, while hourly earnings on a year-over-year basis are expected to increase by 5.3%. These estimates exceed the month-over-month and year-over-year increases for July, which were 0.5% and 5.2% respectively.

Employment growth has persisted despite the outlook of numerous analysts that employment would ease in the face of cost reductions, particularly after Fed Chair Jerome Powell’s speech at Jackson Hole.

“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell explained, adding that these are the consequential “costs of reducing inflation.”

Jobless claims fell for a third consecutive week to the lowest level in two months, while first-time unemployment insurance filing are at 232,000, lower than Bloomberg’s estimate of 248,000.

The post Strong Employment Growth Expected Ahead of Jobs Report appeared first on theprimarymarket.com.

Expected to be released this coming Friday, the Labor Department’s latest monthly jobs report is expected to show a strong increase in U.S. employment, with nonfarm payrolls projected to rise by 300,000 in August according to Bloomberg data.

Despite a positive jobs outlook, Powell’s comments sent markets tumbling, with the Nasdaq falling by 3.9% and the S&P 500 losing 3.3%; marking the biggest decline for both markets since June 13.

“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses”, Powell explained at Jackson Hole. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

Although the growth of inflation has slowed down recently, it remains above the Federal Reserve’s target rate of 2%. Headline PCE remained up 6.3% on a year-on-year basis in July, while core PCE remains 4.6% higher.

The post Investors Await Jobs Data Following Jackson Hole Symposium appeared first on theprimarymarket.com.

Back in quarter one, employment costs had risen 1.4%, giving workers optimism about their financial situation. However, given the news over a potential impending recession, hopes weren’t necessarily high that the rate would continue.

These worries were squashed we the Labor Department announced on Friday that the quarter two numbers showed yet another bump in employment cost: 1.3% this time around. This is slightly higher than was projected by the Wall Street Journal, which had projected the number to be 1.1%.

1.3% still isn’t necessarily a crazy bump, but it’s a very encouraging number when taken into context of where the U.S. economy has been lately.

An even more encouraging thought is the 1.6% wage bump that took place in the second quarter, which is higher than the 1.3% bump that took place in the first quarter. When you take in to comparison the year-over-year statistics, wages have actually gone up an impressive 5.7% rate.

This might not seem like a crazy amount in a vacuum. But if you ask many finance experts, they would say that we’re heading towards a recession, so virtually any wage bump is truly a reason to celebrate if you’re an employee.

The post U.S. Employment Costs Continue to Rise in Q2 appeared first on theprimarymarket.com.

While the labor market in August is expected to have remained tight in the face of rate hikes to cool down inflationary pressures, Wall Street expects a rise in non-farm payrolls by 300,000. Average hourly earnings on a month-over-month basis are expected to rise by 0.4%, while hourly earnings on a year-over-year basis are expected to increase by 5.3%. These estimates exceed the month-over-month and year-over-year increases for July, which were 0.5% and 5.2% respectively.

Employment growth has persisted despite the outlook of numerous analysts that employment would ease in the face of cost reductions, particularly after Fed Chair Jerome Powell’s speech at Jackson Hole.

“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell explained, adding that these are the consequential “costs of reducing inflation.”

Jobless claims fell for a third consecutive week to the lowest level in two months, while first-time unemployment insurance filing are at 232,000, lower than Bloomberg’s estimate of 248,000.

The post Strong Employment Growth Expected Ahead of Jobs Report appeared first on theprimarymarket.com.

Expected to be released this coming Friday, the Labor Department’s latest monthly jobs report is expected to show a strong increase in U.S. employment, with nonfarm payrolls projected to rise by 300,000 in August according to Bloomberg data.

Despite a positive jobs outlook, Powell’s comments sent markets tumbling, with the Nasdaq falling by 3.9% and the S&P 500 losing 3.3%; marking the biggest decline for both markets since June 13.

“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses”, Powell explained at Jackson Hole. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

Although the growth of inflation has slowed down recently, it remains above the Federal Reserve’s target rate of 2%. Headline PCE remained up 6.3% on a year-on-year basis in July, while core PCE remains 4.6% higher.

The post Investors Await Jobs Data Following Jackson Hole Symposium appeared first on theprimarymarket.com.

Back in quarter one, employment costs had risen 1.4%, giving workers optimism about their financial situation. However, given the news over a potential impending recession, hopes weren’t necessarily high that the rate would continue.

These worries were squashed we the Labor Department announced on Friday that the quarter two numbers showed yet another bump in employment cost: 1.3% this time around. This is slightly higher than was projected by the Wall Street Journal, which had projected the number to be 1.1%.

1.3% still isn’t necessarily a crazy bump, but it’s a very encouraging number when taken into context of where the U.S. economy has been lately.

An even more encouraging thought is the 1.6% wage bump that took place in the second quarter, which is higher than the 1.3% bump that took place in the first quarter. When you take in to comparison the year-over-year statistics, wages have actually gone up an impressive 5.7% rate.

This might not seem like a crazy amount in a vacuum. But if you ask many finance experts, they would say that we’re heading towards a recession, so virtually any wage bump is truly a reason to celebrate if you’re an employee.

The post U.S. Employment Costs Continue to Rise in Q2 appeared first on theprimarymarket.com.