The U.S. labor market is set to release several key data points in the coming week, according to AP News.
On Tuesday, the U.S. will release its July report on job openings and labor turnover. This report provides details on job openings in specific industries and regions of the economy, as well as information on layoffs and quits.
On Friday, the government will release the closely watched monthly employment report. The August report will provide data on job growth and unemployment across various sectors, as well as public sector employment.
The July report showed that the U.S. job market unexpectedly stalled. While employment has been a mostly resilient sector of the economy, persistent inflation continues to pressure businesses and households, and consumer confidence is weakening.
A weakening labor market could pose a challenge for the Federal Reserve. The central bank must balance fighting inflation with supporting employment, and its primary tool—interest rates—plays a key role. Raising rates to combat high inflation could further harm the job market, while cutting rates to support employment could worsen inflation.
The Fed has kept rates steady while monitoring the impact of the U.S. conflict with Iran, which has driven up oil prices, making everything from gasoline to shipped goods more expensive. This is compounded by ongoing trade tensions with many countries, which have also raised prices.