August Jobs Report +235,000

[tsptalk]

THE EMPLOYMENT SITUATION — AUGUST 2021

Total nonfarm payroll employment rose by 235,000 in August, and the unemployment rate declined by 0.2 percentage point to 5.2 percent, the U.S. Bureau of Labor Statistics reported today.

https://www.bls.gov/news.release/pdf/empsit.pdf

 

[weatherweenie]

Wouldn't this miss give ammo to the argument that the Fed does not have to start tapering?

 

[Bullitt]

Slowdown was expected due to delta variant, but this was a big miss. Once again, we have to wait until the next unemployment report to see the effect of dumping federal unemployment handouts. (However, many states have already stepped in to fill the void). For many, there is no incentive to go back to work, and the longer they wait, they more "unemployable" they will make themselves. It really is more a labor shortage than job shortage.

This low number is also bringing in concerns of stagflation, which many of the old-timers would love to never see again in their life. Again, pull the incentives to stay home and people will lose the bargaining power for unreasonable wages they they have had the past year.

Certainly the fed won't be tapering as soon as some of the hawks would like, and I see the powers that be already have a new variant (MU) identified that could keep the party going once delta ends.

 

[tsptalk]

It may give them something to think about, but I think the drop in the unemployment rate to 5.2% may be more meaningful to them.