Jobs Revisions Are Pointing to Labor Weakness, Says BlackRock's Rosenberg

• US July Nonfarm Payrolls fell by 23,000 (vs. est. +80,000), indicating labor market weakness.
• The unemployment rate dropped to 4.1% (vs. est. 4.2%), but this is attributed to a fall in the participation rate, not strong job creation.
• Average Hourly Earnings (MoM and YoY) came in below estimates, suggesting easing wage inflation.
• Traders are paring bets on a September Fed rate hike, with the probability falling below 40%.
• Rosenberg views the easing wage picture as 'helpful' for longer-run services inflation and the overall inflation outlook.

Jeffrey Rosenberg of BlackRock discusses the July US jobs report, noting that while the headline unemployment rate fell, the underlying payroll numbers and revisions point to labor market weakness. He highlights that the market is interpreting this data as reducing the probability of a September Fed rate hike, which is seen as a positive development for inflation expectations.