Economists Predict Rebound in Employment After Weak July Report

According to Odaily, a Bloomberg survey indicates that economists generally expect a rebound in employment following a weak report in July. The forecast suggests an increase of 165,000 non-farm jobs and a slight decrease in the unemployment rate to 4.2%. The previous month's data showed a significant underperformance, with only 114,000 non-farm jobs added, far below the expected 175,000, and the unemployment rate rising from 4.1% to 4.3%, the highest since October 2021. If weak employment data continues for a second consecutive month, it may reinforce the market's belief that the Federal Reserve's high-interest rates have been maintained for too long. Currently, the U.S. benchmark interest rate is at its highest level in 23 years, ranging from 5.25% to 5.5%, which could increase the likelihood of an economic recession.