In case you missed the jobs report on Friday, Sept. 2, the Bureau of Labor Statistics reported that the economy added 315,000 jobs during the month of August. The unemployment rate inched upward from 3.5 percent to 3.7 percent. The data was interpreted broadly as good news.
Employment has been running hot for quite a while, adding more than 500,000 jobs per month, on average, since the beginning of 2021. At the same time, the unemployment rate has been trending downward.
The number of job openings has averaged 10 million during this time. To fill these positions, employers have been bidding up wages, adding to inflation. The August report contributes to an easing the stress that contributes to inflation.