Why weaker than expected jobs report is exactly what the market needed.
Friday, the Bureau of Labor Statistics reported an additional 156,000 jobs were addedduring August, far below the month’s previous expectations.
However, experts responded well to the report, one even described this weaker report as a “Goldilocks” report, not too strong, but not too weak.
“For the markets, it is a Goldilocks report which is strong enough to keep the recovery going and weak enough to keep the Fed from tightening too aggressively,” said Brent Nyitray, iServe Residential Lending director of capital markets. “Construction, professional business services, and manufacturing were the biggest contributors to job growth.”
Other experts agreed, saying the new report would not affect the Federal Reserve’sdecision on a rate hike later this month.
“Today’s employment situation report was neither exciting nor depressing, with 156,000 non-farm payroll jobs created in August,” said Mark Fleming, First American Financial Corp. chief economist. “This is a sufficient level of job creation that the Federal Reserve expects is needed for the new entrants into the job market every month.”
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