Wage growth was below forecasts, easing fears of a wage-price spiral. The U.S. economy added 315,000 jobs in August, according to the latest BLS jobs report. Meanwhile, the unemployment rate increased to 3.7% from 3.5% – but for good reasons, as the labor force participation rate jumped strongly. Overall, businesses are hiring, job seekers are active, and earnings are not spiraling upward. That should reassure the Fed in its attempt to get inflation under control.
Fears of a wage-price spiral are easing
Wage growth is moderating – a welcomed sign for the Fed. The top economic concern is inflation.