NFP shows slight cooling in jobs data

The US economy created 315K jobs in August. This number was better than the forecast of 295K but less than last month’s print of 526K. The unemployment rate increased from 3.5% to 3.7%. Moreover, the participation rate increased by 30 bps to 62.4%. Average hourly earnings rose slower: 03% vs last month’s 0.5%. Thus there is evidence of some moderation in the labour market. This is ever so slight, but with the moderation in CPI, it may indicate cooling. However, the Fed will need to see more data points showing such before they’ll be comfortable altering policy course.

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