NFP Preview: Still Positive, but labor market momentum is waning – Wells Fargo

On Friday, the US September official employment report will be released. Analysts at Wells Fargo, look for nonfarm payrolls to rise by 820K. They warn the positive trajectory of the labor market is slowing. 

Key Quotes: 

“Payroll growth is positioned to remain positive, but on a slowing trajectory, following more rapid gains in prior months. We look for nonfarm employers to add a net 820K jobs in September. If our call is realized, employment would still be 7.0% below its pre-pandemic level.”

“Forward-looking employment indicators are mixed, with initial jobless claims remaining stubbornly high on one hand, and business surveys suggesting varying degrees of ongoing improvement in hiring on the other.”

“Even though the unemployment rate fell more than expected in August, we look for it to decline again in September to 8.2%.”