US Job Market Sees Sudden Downshift Amid Weakening Hiring and Wage Growth
Key Summary
The US Bureau of Labor Statistics revised July and August payroll gains downward, reducing the initial 21,000 job gain to a 10,000 loss, and August's 162,000 to 133,000. The 60,000 adjustment affects the labor-based case for a Federal Reserve hike, potentially easing policy pressure on Bitcoin. Average hourly earnings rose 0.1% monthly and 3.0% annually, below earlier estimates. This revised data may reduce the threat of higher discount rates, a potential pressure on speculative assets, including Bitcoin.
US Jobs Revision Turns July’s 21,000 Gain into a 10,000 Loss
Softer hiring and slower wages weaken the labor case for another Fed hike, while inflation and household employment complicate the outlook.
The latest data suggests a decline in labor market conditions, which may affect the Federal Reserve’s decision on interest rates.
Analysts are closely watching the labor market to gauge the Fed's next move, given the mixed signals from inflation and employment.