The Breakdown Soft Jobs Report Clears the Way for Fed Cuts
9 snips
Sep 10, 2025 August's jobs report reveals a dismal addition of just 22,000 jobs, with unemployment creeping up to 4.3%. The podcast dives into the implications of this weak labor market and the potential for Federal Reserve rate cuts. It discusses the internal conflicts within the administration over economic strategies and examines the troubling trends in manufacturing. Additionally, tensions rise around labor data as analysts speculate on how the Fed will navigate these challenges, especially regarding its independence and credibility.
AI Snips
Chapters
Transcript
Episode notes
Labor Market Has Materially Slowed
- August added just 22,000 payrolls and unemployment rose to 4.3%, marking the weakest labor market since 2016.
- Downward revisions and weak monthly prints show the labor market has materially lost momentum.
Revisions Reveal Overstated Job Gains
- Revisions to June and July and a coming payroll adjustment will cut reported job gains dramatically for the year.
- A record downward revision (about 911k jobs) shrinks average monthly non-seasonal job growth this year by roughly half.
Administration Clashes With BLS
- The administration fired the BLS head and accused her of cooking the books, then installed an ally amid claims of data interference.
- Critics fear the move is politicizing the bureau and clearing the way for unqualified hires, per Erica Groshen.