In July, American employers managed to keep a sturdy tempo of hiring, while lifting wages for employees. Apparently, these are signs of labor market tightness, which could potentially clear the way for the Fed to announce next month a plan to get down to shrinking its huge bond portfolio.

As a Reuters survey of economists states, on Friday the Labor Department's closely watched employment report will most likely show that non-farm payrolls leapt by 183,000 jobs the previous month after soaring 222,000 in June.

In June, average hourly earnings are expected to have ascended 0.3% after earning 0.2% in June.  It would be the greatest soar for five months. As for the year-on-year leap in wages, it will probably slow to 2.4% because the previous year's steep ascend is excluded from the calculation.

Average hourly earnings tacked on 2.5% for the twelve months to June and have been going down since ascending 2.8% in February. Experts find lack of strong wage surge surprising especially considering that the US economy is close to full employment.

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