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August Job Growth Beats Expectations, But Unemployment Rate Rises

August job growth 2023

August Job Growth is making beats. The U.S. economy added 187,000 jobs in August, beating economists’ expectations of 170,000. However, the unemployment rate rose to 3.8%, the highest level since February 2022.

The job gains were broad-based, with gains in most major sectors. The health care sector added 51,000 jobs, while the leisure and hospitality sector added 38,000 jobs. The construction sector also added 29,000 jobs.

August Job Growth Statistics Overview

The unemployment rate rose as more people entered the labor force. The labor force participation rate rose to 61.6%, the highest level since March 2020.

Earnings and Workweek Duration

Average hourly earnings rose 8 cents in August, to $33.82. This represents a 4.3% annual increase. The revisions to June and July employment data were significant. June’s employment change was reduced by 80,000, while July’s figures were revised down by 30,000.

The overall picture from the August Job Growth report is mixed. The job gains were strong, but the unemployment rate rose. This suggests that the labor market is still tightening, but that the pace of job growth may be slowing.

The Federal Reserve is closely watching the labor market as it considers its monetary policy stance. The Fed is expected to continue raising interest rates in an effort to combat inflation. However, the rising unemployment rate could give the Fed pause.

The next jobs report will be released on October 7.

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