U.S. July Non-Farm Payrolls Could Prompt the Fed to Delay Rate Hikes

Odaily News: U.S. employers unexpectedly cut jobs in July, and data from the previous months were revised sharply downward, indicating that the labor market is facing challenges after showing surprising strength earlier this year. Data released by the U.S. Bureau of Labor Statistics on Friday showed that non-farm payrolls decreased by 23,000 in July, while employment figures for the previous two months were also significantly revised down. The unemployment rate fell to 4.1%, and the labor force participation rate continued to decline. The report suggests that amid rising prices and heightened uncertainty from the war in Iran, the U.S. labor market may be beginning to weaken.

However, strong consumer demand has so far continued to encourage some employers to move forward with their hiring plans. The data could also prompt the Fed to delay rate hikes, as policymakers weigh inflation pressures against employment risks.