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Here comes the jobs report ...

Aug 26, 2024, 19:49 IST
Reuters/Robert GalbraithA worker cleans the stage in preparation for the Republican National Convention in St. Paul, Minnesota August 31, 2008.The jobs report for June is set for release at 8:30 a.m. ET.

Economists expect the Bureau of Labor Statistics' data to show that nonfarm payrolls increased by 178,000, according to the consensus estimate on Bloomberg. The unemployment rate is expected to remain at a 16-year low of 4.3%.

According to John Herrmann, the director of interest-rates sales and trading at MUFG Securities, job gains could be stronger than expected due to factors including new college graduates entering the market and high worker retention rates shown in the low level of unemployment claims.

Also, some industries including mining, manufacturing, and healthcare have seen a bounce in job growth even as the overall number of net payroll additions has slowed this year.

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But the retail sector poses a downside risk because of the industry's challenges, and the construction sector continues to suffer a shortage of skilled workers.

Average hourly earnings are expected to improve year-on-year to a 2.6% pace from 2.5%. Economists had expected wages to be rising at an even faster pace since the unemployment rate is at a post-crisis low. However, some Federal Reserve officials have noted that the traditional relationship between unemployment and inflation has weakened.

More to come ...

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