Employers added 187,000 jobs in August, above expectations and in line with a labor market that is rebalancing back to normal, the Labor Department reported on Friday.
The unemployment rate, meanwhile, increased to 3.8% from its prior level of 3.5%
Gains came in the health, leisure and construction industries.
The number was above estimates of a gain of around 170,000. Other labor market data released this week showed a gradual softening of demand for workers from employers. That would be consistent with a “soft landing” scenario where the economy cools off enough to keep inflation on a downtrend but not so much as to bring on a recession.
The August jobs report included revisions to the last two months, lowering the gains in June and July combined by 110,000 jobs.
Markets have embraced the idea of a cooling labor market, buying into the belief that the Federal Reserve has reached the end of its tightening cycle and that interest rates have peaked.
Earlier this week, the government reported that the number of job openings fell to 8.8 million at the end of July, from 9.2 million a month earlier. And private payroll firm ADP’s monthly jobs survey for August found employers added 177,000 jobs in the month, below expectations.
“The job openings are coming down, the wage growth is easing and the number of people quitting their jobs is coming down, that’s all good for a soft landing,” says Venkat Balakrishnan, head of asset allocation at Mission Square Retirement.
In particular, some workplace observers say companies have transitioned back to the pre-pandemic era when they were able to hire as needed without worrying about losing candidates or paying too much for them.
“People were hiring sight unseen,” during the pandemic, says Scott Hamilton, global managing director of Gallagher's Human Resources & Compensation Consulting practice. “People are being much more deliberate now, the panic buying has gone out of the market.”
The labor market is a key component of the Fed’s mission, along with price stability, and traditional economic theory holds that as labor markets tighten too much, inflation predictably rises. But that linkage has been called into question during the past three years of the coronavirus pandemic as issues like supply chain bottlenecks and excess stimulus from Washington led to distortions in the economy.
But now, there is growing evidence that with the balance between supply and demand in the labor market and a campaign of higher interest rates from the Fed, inflation has receded. At the same time, improvements in the supply chain and a withdrawal of economic stimulus has had an impact on consumer demand.
“Clearly, the labor market is softening,” says Tony Welch, chief investment officer at Signature FD. Recent economic data from jobs to inflation is “enough of a package to pause” any further interest rate hikes by the Federal Reserve, he adds.
The downshift reverses a period of high growth for the labor market coming out of the pandemic. But even as that happens, one success story has been the performance of Hispanic workers. They are projected by the Labor Department to account for 78% of the net new jobs gained from 2020 to 2030. That would bring the number of Hispanic workers in the labor force from 10.7 million in 1990 to 35.9 million in 2030.
The gain has come for two reasons: Hispanics are younger overall, at an average age of 38.5 to 42 for non-Hispanics and the jobs they tend to hold are in leisure and hospitality, transportation and warehousing, and construction, sectors that have outperformed in recent years.
“I don’t have to tell you those are areas where Hispanics play a big role,” says Javier Palomarez, CEO of the U.S. Hispanic Business Council. He notes that “Hispanic men have the highest employment rate at 75%.”
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B | 中央结算公司:调降部分主营业务服务费用
人民财讯8月25日电,中央国债登记结算有限责任公司发布关于调降部分主营业务服务费用的通知,为持续落实国家减税降费精神,进一步促进金融基础设施服务提质增效,中央国债登记结算有限责任公司(以下简称中央结算公司)决定调降部分主营业务收费。 一、全额免除国际债券(熊猫债)发行登记服务费。 二、对银行间债券市场存续债券的付息兑付服务费费率实施9.5折优惠,优惠后费率为万分之0.475。
C | 全额免除科创债、国际债券(熊猫债)付息兑付服务费。 三、对银行间债券市场现有优惠措施未覆盖的券种和主体的现券交易结算服务费实施9折优惠,优惠后现券业务为135元/笔。 四、对银行间债券市场质押式回购、买断式回购、债券借贷交易结算服务费实施9.5折优惠,优惠后质押式回购单券种为114元/笔,多券种为190元/笔;买断式回购为190元/笔;债券借贷(含跨托管机构债券借贷、集中债券借贷)为190元/笔。 五、对债券柜台业务各交易品种结算服务费费率实施9.5折优惠,优惠后柜台现券、质押式回购、买断式回购、债券借贷、债券远期等各柜台交易品种费率为债券结算面额的万分之0.19,并实行封顶机制,单笔收费不超过120元。 以上优惠措施自2026年9月1日起至2028年12月31日止有效。
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