The payroll employment report was softer than expected, but we would be surprised if it moves the consensus on the Fed. With revisions, payroll growth now averages just 148,000 over the past three months. That is a far cry from the 200,000-plus many were anticipating earlier in the year. The unemployment rate fell a tenth, but for the “wrong reason”-the drop in the labor force (-312,000) outstripped the fall in employment (-115,000). Other parts of the report were favorable, including a longer work week and modest wage increase.
Read the full report here.