The August jobs report was released last Friday, indicating a sluggish recovery of the economy that was below estimates. 169,000 jobs were added - a far cry from the median estimate of 180,000. In addition, June and July's job estimates were revised to indicate that less jobs were added than previously thought. One of the most dramatic figures of the report was the sharp decrease of people working or looking for work. With most of the jobs added being low-wage positions, economists consider this job report to be a a stark reminder of the economy's weak state. However, the job report had some bright spots - namely, an increase in hourly wages and hours worked. Analysts believe that the Federal Reserve could use these bright spots to justify a tapering of the stimulus. The markets responded to this uncertainty, with the S&P 500 and Dow Jones Average both suffering losses on Friday. If the stimulus is tapered, it could lead to increased stress on the economy and a fall in stock prices.
Sources
New York Times
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