Employment Situation Report - The U.S. labor market showed weakness in August with only +22K nonfarm payrolls added, significantly below the anticipated +75K and the revised +79K from the previous month [1] - The unemployment rate increased to +4.3%, marking the highest level since October 2021 [1] Job Creation and Wage Growth - The private sector contributed +38K new jobs, while federal government employment decreased by -88K since the beginning of the year [2] - Hourly wages rose by +0.3%, consistent with the prior month, but year-over-year wage growth declined to +3.7%, the lowest since 2021 [2] Job Revisions and Labor Market Indicators - July's job total was revised up by +6K, but June's figures were revised down by -27K, resulting in a loss of -13K jobs, the first negative monthly figure since December 2020 [3] - Labor force participation remained low at 62.3%, and the average workweek was at 34.2 hours, the second-lowest of the year [4] Sector Performance - Job gains were seen in Education and Healthcare (+46K) and Leisure and Hospitality (+28K), while Professional and Business Services lost -17K jobs and Manufacturing shed -12K jobs [4] Market Reaction - Following the report, pre-market futures rose significantly, with the Dow increasing from -138 points to +22, and the Nasdaq rising from +101 points to +226 [6] - Bond yields decreased, with the 10-year yield at +4.10% and the 2-year yield at +3.52% [6] Federal Reserve Outlook - The likelihood of a Federal Reserve rate cut at the upcoming September meeting has surged to +100%, with discussions of a potential 50-basis point cut [7] - Fed Chair Jerome Powell acknowledged the weaker job numbers, indicating that rate cuts are likely despite rising inflation metrics [8]
Weak Nonfarm Payrolls Data for August
ZACKS·2025-09-05 16:06