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02

A tight labor market

A claims figure that low points to employers reluctant to let workers go, a sign of continued labor-market strength.

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03

It feeds the rate debate

Labor strength removes an argument for easier policy and hands more footing to Fed officials who favor a rate hike.

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04

Inflation is the backdrop

With inflation above the Fed's target for years, a tight jobs market makes a hike easier to justify than a cut.

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05

What to watch

Whether the broader jobs report confirms the strength, and how rate expectations shift into the Fed's September meeting.

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