Employment Research Brief

Labor market weakens. Sluggish on boarding persisted in August, with nonfarm payrolls rising by only 22,000 positions as the unemployment rate edged up to 4.3 percent. Job growth remained narrowly concentrated, led by health care with a gain of 46,000 roles. Meanwhile, federal government, manufacturing and wholesale trade each shed more than 10,000 jobs. In July, the number of unemployed persons topped job openings for the first time since 2021, further underscoring reduced hiring. The softening employment market has reinforced expectations of a rate cut by the Federal Reserve at its next meeting and put downward pressure on the 10-year Treasury. More accommodative monetary policy may provide modest relief for commercial real estate investors, but weaker labor conditions could pressure select property fundamentals over the coming quarters.