MNI BRIEF: US Aug Jobs Confirm Fed Rate Cut; U-Rate 4.2%
MNI (WASHINGTON) - The U.S. unemployment rate dipped to 4.2% from 4.3% as expected in August, and job growth remained decent, the Bureau of Labor Statistics said Friday, likely sealing the deal for a quarter-point interest rate by the Federal Reserve later this month. Employers added 142,000 workers, slightly below expectations for 165,000, while payroll gains for the past two months were revised down 86,000. (See: MNI POLICY: Fed Prefers Gradual Rates Easing If Jobs Allow)
Traders were still not fully convinced the FOMC would be more aggressive -- the chances of a half point move inched up to just over 50% after the report.
Job gains were driven by construction and health care, the BLS said. Average hourly earnings surprised higher, adding 0.399% in August compared to 0.229% in July, and 3.8% over the year, up two tenths from July.