US labor market barely recovers in August – Commerzbank

In August, US job growth was 142k, which was slightly less than expected (consensus 165k, Commerzbank forecast 150k), notes Commerzbank Chief Economist Dr. Christoph Balz.

The labor market remains a cause for concern

“The US labor market barely recovered in August after July’s disappointing report. 142 thousand new jobs were created, while the unemployment rate fell to 4.2%. At the same time, however, job growth in June and July was revised down by a total of 86,000.”

“The labor market therefore remains a cause for concern. The Federal Reserve is likely to cut interest rates on September 18. However, the report does not provide a clear indication of whether policymakers will prefer a move of 25 or 50 basis points.”