Another solid month of US job creation could help keep alive investor hopes that the world’s largest economy is headed for a so-called soft landing, even as the Federal Reserve maintains its hawkish bias towards inflation.
Economists are predicting that employment figures on Friday will show non-farm payrolls grew by about 170,000 in August. If correct, that would mark the slowest rate of job creation since January 2021, but still roughly at the level needed to absorb most new entrants to the jobs market.
“We expect further signs of gradual labour market moderation, but not outright weakness,” Credit Suisse’s economics team said in a note to clients.