Trading the August jobs report: What could affect the number, and how investors may respond
Some economists see one variable that could hold back Friday's jobs report.
TL;DR
- The end of Temporary Protected Status for Haitians may hinder Friday's jobs report.
- Hundreds of thousands of Haitians previously qualified to live and work in the U.S. under this program.
- Economists Gregory Daco and Lydia Boussour noted this as a downside risk for August payrolls.
- The exact number of affected workers is uncertain due to potential visa changes.
- A drag on employment might be most noticeable in labor-intensive service industries.
- Bill Adams believes the work authorization change affected the ADP private payrolls release, which showed lower-than-expected job growth.
- JPMorgan's trading desk has detailed potential S&P 500 movements based on different job growth outcomes.