US Job Growth Rises Above Market Expectations
The United States (US) Labor Department reported that the US economy added 201,000 jobs during the month of August and was above market expectations of 191,000. The largest job gains came from healthcare and professional and business service sectors whilst the manu-facturing sector fell for the first time since July 2017. Despite this increase, the unemployment rate remained unchanged at 3.9%. Average hourly earnings increased by 0.4% month over month, exhibiting a year-over-year wage growth to 2.9%. Given the strong jobs growth coupled with the strength in consumer spending and inflation being above the Federal Reserve’s target, it is likely that they may raise rates at their next meeting in September. However, a major concern is that the threat of the ongoing trade wars may possibly impact the manufacturing sector in the near term, potentially further impact-ing job creation in the sector and impacting consumers purchasing power.
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