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Strong Labor Market Keeps Fed Rate Hike in the Spotlight

Financial Commentary
September 8, 2026

By Michael List, CFA, CFP®
Investment Management Officer

 

Labor Day highlights the importance of American workers, the latest jobs report offers a snapshot of the economy they power. Employment, wage growth, and unemployment trends provide key signals about the strength of the labor market and where the economy may be headed. This Labor Day, the data offers a timely look at the forces shaping jobs and workers across the country.

The August employment report released by the Bureau of Labor Statistics showed renewed strength after several months of weaker reports as seen in the chart below.  Total nonfarm payroll employment grew by 162,000 during the month.  Most industries added jobs during the month except for information technology and financial services.  In addition, the unemployment rate was unchanged at 4.1%, the labor force participation rate increased to 61.6%, and average hourly earnings and time worked both increased. 


Source: Bureau of Labor Statistics

August’s report provides encouraging signs of resilience, with job growth, rising wages, and increased labor force participation. This week we will receive an update on inflation with the Consumer Price Index and the Producer Price Index.  These have been trending lower in the past few months but remain above the Federal Reserve’s target.  

Looking ahead, strength in employment combined with inflation that has remained elevated have some investors looking for the Federal Reserve to raise rates next week.  Market Treasury rates imply a 54% chance of a Fed rate hike this month.  The next round of economic data and the Fed’s response will be closely watched by investors.  If you want to know how this affects your portfolio,  reach out to your advisor today.  Your success matters.

About the Author

Michael List, CFA, CFP®

Michael List is an Investment Management Officer within Security National's Wealth Management Division. Michael earned his Bachelor of Science in Business Administration with a concentration in Finance and Economics from Creighton University and holds the esteemed Chartered Financial Analyst (CFA) and Certified Financial Planner CFP® designations. List helps execute investment strategy, transactional execution and overall portfolio management at the Bank.

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