Total nonfarm payroll employment in the United States increased by 235,000 jobs in August, well below the average monthly job growth so far in 2021 of 586,000 jobs, according to the Bureau of Labor Statistics. In addition, the unemployment rate declined to 5.2 percent. Despite the slower pace in August, total employment in June and July was revised upward to 962,000 jobs and 1.053 million jobs, respectively.
Commenting on the potential response from the Federal Reserve to the underwhelming job growth, Ali Jaffari, head of North American capital markets at Validus Risk Management, noted, “Expect the Fed to remain somewhat defensive until there is an improvement in the pace of growth in labor markets. The guidance from the Fed … on tapering bond purchases by year-end was dependent on the economy hold