Newswise — Employers added 142,000 jobs in August, signaling a continued slowdown in the labor market as unemployment ticked down to 4.2 percent. While job gains were below expectations, wage growth accelerated, offering mixed signals for policymakers and the Federal Reserve, which may cut interest rates soon.
Key sectors like construction showed resilience, but revisions to previous months suggest a more pronounced labor market cooling trend. Tara Sinclair, director of the GW Center for Economic Research, has been keeping a watchful eye on the labor market.
“I had feared after last month that the labor market was starting to look like sand slipping through an hourglass for the Fed, but the tick down in the unemployment rate and the continued increase in employment was reassuring,” says Sinclair. “Even though payroll gains were less than expected and there were substantial downward revisions in employment for June and July, this is still an economy that is creating jobs. I expect the Fed will lower interest rates by 25 basis points at their meeting later this month to begin reducing their restrictive stance.”
Sinclair also serves as a professor of economics and international affairs at GW. Her research models, explains, and forecasts macroeconomic fluctuations and trends. She also evaluates forecasts, particularly with respect to their role in policy and decision-making. From 2022 to 2024 she served as the Deputy Assistant Secretary for Macroeconomics in the Office of Economic Policy at the Department of Treasury.
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