Private employers in the US hired 67,000 workers in August after adding a revised 107,000 jobs in July. Overall, nonfarm payrolls decreased by 105,000 jobs in August as the government continued to trim its census workers. There were large upward revisions to the prior month job losses, adding jobs of 123,000 jobs over the last 2 months. The average job loss over the last 3 months is 94,000 jobs. Job growth was seen in construction (+19k), business services (+20k), education and health (+45k) and leisure and hospitality (+13k). Manufacturing lost 27,000 jobs and the government trimmed 121,000 jobs.

 

The unemployment rate increased slightly to 9.6% in August from 9.5% in July. The household survey showed job growth of 290,000 jobs but that was offset by an expansion of the labor force by 550,000 people. The average length of unemployment decreased slightly to 33.6 weeks in August from 34.2 weeks in July. Average hourly earnings increased 0.3% in August after rising 0.2% in July. Over the last year, average hourly earnings have increased 1.7%. Average weekly hours were unchanged in August at 34.2 hours.

 

While job growth continues to be modest, the market is finding relief in the stronger than expected employment report that the economy may not be sinking into another recession. However, until the economy further stabilizes, consumers and businesses will remain modest in their spending and economic growth will continue to be modest.

Kristin Brewer

Senior Portfolio Manager 

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