---
title: "Yellen: US labor market remains robust, still creating job opportunities"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/213599720.md"
description: "US Treasury Secretary Yellen pointed out that despite recent data showing a softening labor market, the US labor market remains robust and continues to create job opportunities. The unemployment rate has risen from 4.1% in June to 4.3%, but this level is still relatively low. It is expected that the unemployment rate will slightly decrease to 4.2% in August. Yellen and other economists such as Michael Feroli from Morgan Stanley expect that the Federal Reserve may cut interest rates at this month's meeting to address market conditions"
datetime: "2024-09-05T22:25:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/213599720.md)
  - [en](https://longbridge.com/en/news/213599720.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/213599720.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/213599720.md) | [繁體中文](https://longbridge.com/zh-HK/news/213599720.md)


# Yellen: US labor market remains robust, still creating job opportunities

According to the financial news app Zhitong Finance, US Treasury Secretary Yellen stated that despite this week's data indicating a weakening labor market, the US labor market remains robust. Yellen told reporters on Thursday, "My assessment is that we have a strong and healthy labor market, and we are still creating job opportunities."

Before Yellen made the above remarks, several new data points indicated a softening outlook for the labor market, with the Fed expected to cut interest rates during this period.

The July employment report showed an unexpected increase in the unemployment rate, rising from 4.1% in June to 4.3%, which triggered a market sell-off in early August.

However, Yellen pointed out that the current unemployment rate is still at a relatively low level. She said, "Over the past year or so, the tightness of the labor market has eased somewhat, but by historical standards, our current unemployment rate is still considered very low."

The August employment report, expected to be released on Friday morning, is projected to show a slight decrease in the unemployment rate to 4.2%. Investors are eagerly awaiting this data to further understand the health of the labor market, especially after recent signs of weakness.

Private sector employment data shows that employers added only 99,000 workers in August, well below the expected 140,000 and lower than the 111,000 new jobs added in July. At the same time, the number of job vacancies has also decreased. According to data from the US Bureau of Labor Statistics, job vacancies in July fell to 7.67 million, hitting a three-year low.

It is expected that the Fed will cut interest rates at a meeting later this month, with the extent of rate adjustments possibly depending on labor market data. Currently, investors generally expect a 25 basis point rate cut, but the market also sees an increased possibility of a 50 basis point cut.

On Thursday, Michael Feroli, Chief US Economist at Morgan Stanley, stated that the Fed should cut rates by 50 basis points at the September meeting. Feroli said, "We believe the Fed should quickly return to a neutral interest rate level, and we see ample reason to accelerate the pace of rate cuts."

He also noted that waiting until inflation has returned to 2% may be too late. "Although inflation is still slightly above target, the unemployment rate may already be slightly higher than the level the Fed considers consistent with full employment. Currently, there are risks in both the labor market and inflation, and if either of these risks materializes, the Fed can adjust its policy direction at any time."

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