US economy sees surge of 142,000 jobs, lower than market expectations
(MENAFN) In August, the US Economy saw an increase of 142,000 jobs, falling short of market expectations, according to figures released by the labor Department on Friday. Analysts had anticipated a gain of 164,000 nonfarm payrolls for the month. Additionally, the job additions for July were revised downward by 25,000, from an initial figure of 114,000 to a revised 89,000.
Despite the lower-than-expected job growth, the unemployment rate decreased slightly to 4.2 percent in August, down from 4.3 percent in July, aligning with market forecasts. However, the number of unemployed individuals rose to 7.1 million in August, up from 5.9 million in July. The labor force participation rate held steady at 62.7 percent, while the employment-population ratio remained unchanged at 60.0 percent. The number of people not in the labor force but wanting a job remained at 5.6 million, reflecting that they were not counted as unemployed due to not actively seeking work or being unavailable.
The job gains for August were predominantly in the construction sector, which saw an increase of 34,000 jobs. This was followed by the healthcare sector with 31,000 new positions and social assistance with 13,000. Average hourly earnings for private non-farm payrolls rose by 0.4 percent to USD35.21 per hour, reflecting a 3.8 percent annual increase compared to August 2023.
In response to the report, President Joe Biden highlighted that wages and incomes are rising faster than prices, businesses are investing in the US, and there is a surge in entrepreneurial activity. He emphasized the importance of maintaining the historic gains achieved for American workers, especially with inflation nearing normal levels, and reaffirmed his commitment to supporting economic growth and job creation.
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