US non-farm payroll: weaker than expected
Isaac Stell, investment manager at Wealth Club said: “A rate cut in September is now a forgone conclusion following a weaker than anticipated jobs report. Not only are today’s figures showing that cracks are appearing in the labour market but revisions to prior months job reports show the picture is far less rosy than previously thought. The unemployment rate is also an area of concern hitting its highest level since October 2021.
The US has been through a myriad of trials recently, so it is no surprise that employers remain cautious on hiring, given the uncertainty over tariffs, trade and immigration policies.
With a rate cut in September all but confirmed by today’s data, thoughts may turn to the severity of the cut with murmurings of a 0.50% cut a possibility. With the unemployment rate heading up and new jobs falling, a larger cut could be the antidote the labour market needs.”