The Bureau of Labor Statistics (BLS) reported that the U.S. employers added 22,000 jobs last month, lower than the 75,000 forecast, and led by gains in health care. The unemployment rate rose slightly to 4.3%.
According to the report, the number of unemployed people is currently 7.4 million. The unemployment rate for prime age workers—those between ages 25 and 54—remained the same as the previous month at 3.4%.
The labor force participation rate—the share of the population that is looking for work—rose by 0.1% to 62.3%, but is little changed for the past three months. The employment population ratio held steady at 59.6%.
In August, employment trended up in healthcare, which added 31,000 jobs, below the average monthly gain of 42,000 over the prior 12 months. Employment continued to trend up over the month in ambulatory health care services (+13,000), nursing and residential care facilities (+9,000), and hospitals (+9,000).
Gains were also seen in social assistance (+16,000), reflecting continued job growth in individual and family services (+16,000).
Declines were seen in federal government employment (-15,000) which is down by 97,000 since reaching a peak in January; wholesale trade employment (-12,000); and manufacturing employment (-12,000) which is down by 78,000 over the year.
Average hourly earnings for all employees on private nonfarm payrolls increased by 10 cents, or 0.3 percent, to $36.53 in August. Average hourly earnings are up 3.7 percent over the past 12 months.
According to Yahoo Finance, revised figures now suggest that over the past three months, the US economy has created fewer than 30,000 new jobs, on average.
Experts continue to speculate on how unemployment news could impact interest rates. “A weaker-than-expected jobs report all but seals a 25-basis-point rate cut later this month,” according to Fitch Ratings head of US economic research Olu Sonola, as reported by CNBC. “Near term, the Fed is likely to prioritize labor market stability over its inflation mandate, even as inflation drifts further from the 2% target.”
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Sources: BLS, Yahoo Finance, CNBC
