WASHINGTON—NAFCU Chief Economist and Vice President of Research Curt Long said the latest jobs report – with disappointing results showing only 156,000 jobs added in August – could alter the timing of the next interest rate hike.
"Job growth disappointed in August, with employment gains falling shy of expectations and downward revisions to prior months," said Long. "The unemployment rate ticked up even as growth in the labor force slowed. Wages increased by just three cents per hour. The labor market is still in fine shape, but this report will augment the arguments of those in the Fed who want to hold off on a rate hike until inflation strengthens. NAFCU continues to believe that the next rate hike will be in 2018."
The Federal Open Market Committee’s next two-day monetary policy meeting is set for Sept. 19-20.
In other report data, the unemployment rate edged up to 4.4% in August as the labor force expanded 77,000 workers, Long noted.
Average hourly earnings rose three cents to $26.39 in August. Over the last 12 months, wages are up 2.5%. Since 2009, year-over-year wage growth has averaged just 2.2%, Long said.