- Federal Reserve Chair Jerome Powell indicated that job gains are running below the breakeven rate, which is the level of job growth needed to keep unemployment stable.
- The U.S. economy added only 22,000 jobs in August, significantly lower than the expected 75,000, with June's job growth revised to a decline of 13,000.
- This slowdown in job growth, coupled with a slight rise in the unemployment rate to 4.3%, has increased expectations for the Federal Reserve to cut interest rates.
- Economists suggest that the breakeven rate for job gains is lower than in the past due to factors like reduced immigration and a decreased supply of workers.
- The healthcare industry, typically a strong job creator, also saw a decline in its average monthly gains.
Powell notes job gains below breakeven rate, signaling potential rate cuts
Sep 17, 2025, 6:34:10 PM UTC(13 days ago)
Impact: High
From:@DeItaone
POWELL: JOB GAINS RUNNING BELOW BREAKEVEN RATE
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