1. Hiring Pace
Back in July, employers added 255,000 jobs which marked a decrease from the 292,000 jobs created in June. Nevertheless, the June and July period marks the best two-month stretch this year and "eased" fears brought on from a poor May report. It would be wise to pay attention to see if August's data growth slows and if there are any revisions to past months.
2. Jobless Rate
The unemployment rate is expected to remain below 5 percent. but it is important to pay attention to the broader data points, including discouraged workers and individuals stuck doing just part-time work when they want to work full time.
3. Wage Gains
Average hourly earnings were 2.6 percent higher last month compared to the same period a year ago, which is the highest seen since the economic expansion began. If wage growth continues to be strong it would serve as a sign that the labor market is tightening and could supper consumer spending in the bottom half of the year.
4. Participation Rate
The percentage of Americans in the labor is only slightly above a 40-year low, and this figure has actually been trending down since March. A continued high number of Americans sitting on the sidelines does suggest there is more slack in the job market than the headline figures imply.
5. Federal Reserve
Finally, Friday's job report will be closely watched by the Federal Reserve as "firm" hiring data along with a "steady" unemployment rate bolsters the case for the central bank to hike its benchmark interest rate. On the other hand, a "severe miss of expectations" could force Fed members to reconsider.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.