August Jobs Report 'Somewhat Encouraging,' Jefferies Says

09:35 AM EDT, 09/05/2025 (MT Newswires) -- August's employment report is "somewhat encouraging" after downward revisions in the previous month, which raises the likelihood of a 25 basis point rate cut at the Federal Open Market Committee meeting on Sept. 17, Jefferies analysts said in a note Friday.

The employment report showed August nonfarm payrolls rose by 22,000, well below the 75,000 jobs increase expected in a survey compiled by Bloomberg as of 7:30 am ET. July payrolls saw an upward revision to a 79,000 increase, and June payrolls were revised downwards to a 13,000 decrease, for a net downward revision of 21,000 jobs.

Analysts said that an improvement in the household survey is likely enough to prevent a 50 basis point cut at the next FOMC meeting, but added that the possibility remains.

The unemployment rate rose to 4.3% in August from 4.2% in July, according to the US Bureau of Labor Statistics report.

Jefferies analysts said it was still too early to determine the extent of a "post-Liberation Day shock" to the labor market as data collection problems persist.

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