The economy is expected to have added 1.32 million jobs in August, down from 1.76 million in July as rehirings slowed.Economists say the labor market could be impacted by the lack of stimulus spending, which has yet to be approved by Congress.
Economists expect 1.32 million jobs were added in August, and that the unemployment rate fell to 9.8%, according to a Dow Jones survey."Retail spending and durable goods orders are up. The economy is progressing," said Chris Rupkey, chief financial economist at MUFG Union Bank. "If that is the case, the labor market should follow demand in the economy. There's still a gaping hole here. We lost 22 million jobs in March and April. It came back nearly 9.
"I do think the general assessment is the jobs number will show a further moderation in the pace of job creation, the degree of which is what's up in the air," said Michelle Meyer, head of U.S. economics at Bank of America. "There's further growth. It's just at a slower pace than in the early stage of the recovery."