CITIC Securities: Strong Nonfarm Payrolls Offset Waller's Remarks, Markets Await CPI Data

TechFlow reported on Sept 7 that CITIC Securities stated in a research report, US non-farm payroll additions in August 2026 were significantly higher than expected, with substantial contributions from the leisure and hospitality and healthcare sectors, alongside a rebound in local government education positions. Structurally within the private sector, the goods-producing sector added jobs for the sixth consecutive month, potentially reflecting demand for data center construction in the US. The decline in employment in the financial and information technology sectors reflects the impact of AI.

The August unemployment rate remained at 4.1% (4.14% when rounded to two decimal places), while the labor force participation rate rebounded from 61.4% to 61.6%. Monitoring remains necessary for the continued decline in participation among the 45-54 age group. As the strong August non-farm data and Fed Governor Waller’s dovish comments offset each other, markets have once again priced in approximately a 60% probability of a September rate hike. Attention will now shift to the August CPI release on Sept 11. (Jin10)