US August Unemployment Rate Declines, Labor Market Remains Stable

According to BlockBeats, a research report by China International Capital Corporation (CICC) on September 9 indicated that the decline in the U.S. unemployment rate for August reflects a reversal of temporary unemployment, aligning with expectations. However, the slowdown in the increase of non-farm payrolls suggests that corporate demand for labor is also decreasing. The positive aspect is that there are no significant signs of mass layoffs, and the number of unemployment benefit claims remains low. This indicates that the labor market remains stable and has not experienced a sharp decline. Looking ahead, the U.S. economy is still expected to achieve a soft landing, but the Federal Reserve must also take action. The likelihood of the Federal Reserve cutting interest rates by 25 basis points in September is higher, and it may consider further rate cuts depending on the situation thereafter.