Jobs Up by 22,000 in August, Unemployment at 4.3%, BLS Reports
(Image courtesy of BLS)
The Bureau of Labor Statistics released August jobs data Friday morning, finding that total nonfarm payroll employment ticked up by 22,000, and the unemployment rate is little changed at 4.3%.
Gains were made in health care. Losses appeared in federal government, mining, quarrying, and oil and gas extraction.
The change in total nonfarm payroll employment for June was revised down by 27,000, from 14,000 in gains to 13,000 in losses, and the change for July was revised up by 6,000, from 73,000 to 79,000. Employment data for June and July combined is 21,000 lower than previously reported.
“While the headline unemployment rate increased to 4.3%, what was more notable was the larger increase in the U-6 to 8.1%, with more workers only able to find part-time work or becoming discouraged by the lack of job openings, and the continued increase in the length of unemployment spells. While the pace of layoffs has picked up somewhat, the hiring rate remains quite low. It is increasingly difficult for those laid off, and for new entrants into the job market, to find a position,” observed MBA SVP and Chief Economist Mike Fratantoni.
“The slowdown in the job market should be more than enough for the FOMC to cut its short-term rate target at its September meeting, as this is not a picture of an economy at ‘maximum employment,’ and the greater risk now appears to be that the job market will slip further in the months ahead,” Fratantoni noted. “The pace of any additional cuts will certainly be tempered by the ongoing risk of a pickup in tariff-induced inflation.”
“As football season kicks off, August’s jobs report may be the turnover that forces the Fed to change its play calling–starting with its potential 25 basis point rate cut at its September meeting,” First American Senior Economist Sam Williamson said.
“With inflation not reaccelerating and job growth fading, the Fed may see this as an opportunity to recalibrate–shifting policy back toward neutral, rather than launching a full pivot to stimulus,” Williamson continued. “A rate cut in September would mark the first step in that adjustment, and could put downward pressure on long-term yields, offering some relief to prospective home buyers facing elevated mortgage rates and prices. For those still on the sidelines, this could be the opening drive that begins to move the chains on affordability–especially if inventory improves and price growth continues to moderate.”
