Analyst: US labor demand is falling faster than the labor supply is contracting

August 1 (UTC+8), analysts comment on US non-farm payroll data: July's non-farm payroll data was unexpectedly weak, but the most shocking thing was the significant revision of past data - downgrading the previous two months' job growth from "solid levels" to almost zero. The unemployment rate also rose slightly, which is what Federal Reserve Chairman Powell called "the most critical data" earlier this week. Although the labor force has shrunk for the third consecutive month, the unemployment rate has not improved. The core message conveyed by this jobs report is that the rate at which labor demand is falling is exceeding the rate at which labor supply is contracting - the labor market is not as solid as Powell said at the beginning of the year, and we expect him to revise his view. Compared to our previous expectation of a rate cut in December, the possibility of an earlier rate cut is now increasing. [Jin10]