August jobs up an inline 1.37M; unemployment rate falls all the way to 8.4%

August nonfarm payrolls: +1.371M vs. +1.400M consensus and 1.734M in July (revised from +1.763M).

Total nonfarm payroll is 11.5M below the February level.

Unemployment rate: 8.4% vs. 9.8% consensus, 10.2% prior.

Average hourly earnings rise 0.4% M/M vs. estimate of -0.1%.

Regarding fiscal policy, the better than expected report will mean less pressure to provide another stimulus package, according to economist Christophe Barraud.

And on the monetary policy side, there’s less pressure on the Fed to change its forward guidance soon, he said.

Labor force participation rate increased by 0.3 percentage points to 61.7% in August; that’s still 1.7 pp below its February level.

“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it,” the Bureau of Labor Statistics said.

Increase in government employment reflects temporary hiring for the 2020 Census.


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