Rehiring is likely to have continued in August, though at the slowest pace since the job market began to spring back from mass layoffs in March and April.
High-frequency labor market gauges over the past month suggest that while the economic recovery is ongoing, it is losing some momentum. Job postings, employment across small businesses, and temporary employment all slowed between the July and August payroll reference periods (the Labor Department surveys during the week of the month that contains the 12th). On the other side of the jobs equation, meanwhile, layoffs remain at historic levels.
Given the volatile nature of the U.S. economy’s snapback from March and April levels, it’s been harder than ever for economists to forecast monthly economic readings. That’s especially true for nonfarm payrolls, where issues such as misclassifications of laid-off workers have made the data less predictable.
In other words,