US job growth expected to rebound in August; unemployment rate forecast steady at 4.1%

U.S. job growth is anticipated to rebound in August, with the unemployment rate expected to remain steady at 4.1%, according to the Labor Department's upcoming employment report. However, the recovery may be limited by job losses stemming from the expiring Temporary Protected Status for Haitian immigrants. Economists predict nonfarm payrolls increased by 56,000 jobs last month, after a 23,000 decline in July.

The rebound in August is expected to be bolstered by a resurgence in the leisure and hospitality sector, which had shed jobs for two consecutive months. Nevertheless, the growth in employment is still considered a "slow hire, slow fire" market. The termination of TPS could lead to a 15,000 drag on payrolls, primarily affecting labor-intensive services sectors like healthcare.

The Federal Reserve's decision on interest rates is unlikely to be swayed by the August employment report, with a focus on the upcoming Consumer Price Index report.