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Economic news
06.09.2024

U.S. nonfarm payrolls increase less than anticipated in August; unemployment rate slips in line with expectations

The U.S. Labor Department reported on Friday that nonfarm payrolls increased by 142,000 in August after a downwardly revised 89,000 increase (from 114,000) in July. The July reading was in line with average job growth in recent months but below the average monthly gain of 202,000 over the prior 12 months.  

According to the report, the largest jobs advances occurred in construction (+34,000) and health care (+31,000).

The unemployment rate slipped to 4.2 per cent from an unrevised 4.3 per cent in the prior month.

Economists had forecast the nonfarm payrolls to rise by 160,000 and the jobless rate to drop to 4.2 per cent.

The labour force participation rate held steady at 62.7 per cent in August, while hourly earnings for private-sector workers climbed by 0.4 per cent m-o-m (or $0.14) to $35.21, following an unrevised 0.2 per cent m-o-m gain in July. Economists had predicted the average hourly earnings to rise by 0.3 per cent m-o-m in August. Over the year, the average hourly earnings surged 3.8 per cent in August, following an unrevised 3.6 per cent soar in the previous month. Economists had expected the annual wage to grow by 3.7 per cent in August.

The average workweek increased 0.1 hour to 34.3 hours last month, matching economists' expectations.

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