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The labor market is rapidly shifting from tight to balanced as businesses have scaled back their appetite for hiring. As the Federal Reserve decided on Wednesday to keep interest rates at their current level, pressure will continue to mount to reduce rates in September to ease this softening labor market. The question is no longer when they will cut rates, but by how much.
The U.S. economy added just 114,000 new jobs last month, with a net negative revision of 29,000 combined for May and June’s data. The three-month average for job growth is now below 170,000, the lowest in