US jobs growth disappoints, but is still fast enough for Fed to start selling bonds
Washington — US jobs growth slowed more than expected in August, after two straight months of strong gains, but the pace of increase should be more than sufficient for the Federal Reserve to announce a plan to start trimming its massive bond portfolio. Anaemic wage gains could, however, make the US central bank cautious about raising interest rates again this year. The Labor Department said on Friday that nonfarm payrolls increased by 156,000 last month after rising 189,000 in July. Average hourly earnings rose 3c or 0.1% — after advancing 0.3% in July — keeping the year-on-year gain in wages at 2.5% for a fifth consecutive month. August’s moderation in employment growth, which pushed payroll gains below the 176,000 monthly average for this year, probably reflects a seasonal quirk as well as a dearth of qualified workers. Over the past several years, the initial August job count has tended to be weaker, with revisions subsequently showing strength. The department said Hurricane Harv...
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