Reuters Employment Survey Points to Lower Employment Growth

The labor market likely took a step back in August, an outcome that could compel the Federal Reserve to pump additional money into the sluggish economy.

Growth in nonfarm payrolls is expected to have slowed last month to 125,000 from 163,000 in July, according to a Reuters survey of economists. The unemployment rate is seen holding steady at 8.3 percent.

The elevated jobless rate has put the economy front and center in the race for the White House, endangering President Barack Obama’s hopes for a second term.

A weak jobs report from the Labor Department on Friday could rob Obama of any momentum he hoped to gain with his speech at the Democratic National Convention on Thursday.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza