187,000 new jobs added in August continues to signal an easing labor market

The U.S. economy added 187,000 jobs in August, in line with consensus estimates, and the unemployment rate rose by 0.3 percentage points to 3.8 percent, as the number of unemployed persons jumped by 514,000, to 6.4 million.

The June numbers were revised down by 80,000, from +185,000 to +105,000, and the July numbers were revised down by 30,000, from +187,000 to +157,000. The past three months of jobs data has revealed a cooling labor market that is potentially finding stability after its strong previous two years (prior to the past three months, the previous 29 months had each seen +200,000 jobs added)

The cooling labor market may be compelling data for the Fed to keep rates where they are, a decision that will be decided upon at their September 19-20 meeting. In his remarks in Jackson Hole, Wyoming, in August, Jerome Powell said, “Evidence that the tightness in the labor market is no longer easing could also call for a monetary policy response.” The past three mon