US Jobs August Report: A Disappointment

The August report for US Jobs is finally out and it is worse than you would expect. The U.S. economy included 156,000 nonfarm payrolls in August while the rate of unemployment climbed marginally to 4.4%, as indicated by the most recent figures from the Bureau of Labor Statistics.

Economists expected nonfarm payrolls to witness a growth in August by 180,000. Not only this, the unemployment rate was relied upon to hold unfaltering at 4.3% close to a post-crisis low. The BLS noted in its report “no [discernible] impact” on the business information for August due to Hurricane Harvey.

Wage growth was also a disappointing figure, with normal hourly income rising 0.1% over the earlier month and 2.5% over a year ago. Earnings were supposed to see a rise of 0.2% over the earlier month and 2.6% over the earlier year. An increase in wages is seen by financial analysts as forecasting an uptick in the inflation levels which has also been a disappointment this year.

The rate pf labor force participation during the month of August remained at 62.9%. Along with this, the underemployment rate also remained at 8.6%.

The reports of July which happened to be good news also some slight revision where in the nonfarm payrolls rose by 189,000 during the month, below the 209,000, which was initially reported by the BLS.

As far as industries are concerned, the best performing one was the manufacturing payrolls which rose by 36,000 in August which happens to be more than expected. The biggest gainers were professional and business services whose payrolls rose by 40,000.

As per reports, 237,000 jobs were created in the private sector during August. During the last few years, it has been the month of August which has been the weak performer in terms of job reports.

As per Ian Shepherdson, an economist at Pantheon Macroeconomics, over the last several years, August’s initial jobs print has been revised higher a number of times, which might happen this year as well.

Spencer Hill, an economist at Goldman Sachs, ahead of the report had said that he expected that the reports would reveal about 160,000 job creation in August.

Source: Yahoo

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