The latest job report for August provides a comprehensive overview of the current state of employment in the United States. 

August’s Key Findings

According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment rose by 142,000 jobs, while the unemployment rate remained relatively stable at 4.2 percent. 

Key sectors include:

• Construction
• Healthcare

Sector-Specific Employment Trends

August's employment landscape highlighted noteworthy shifts across the following sectors.

Construction

Construction employment rose by 34,000 jobs, significantly higher than the average monthly increase of 19,000 over the past year. 

Heathcare

The healthcare sector added 31,000 jobs, with ambulatory healthcare services and hospitals contributing most of the growth. 

Manufacturing

Conversely, manufacturing employment decreased by 24,000 jobs, reflecting ongoing challenges in the durable goods sector. 

Other major industries, including retail, transportation, and government, showed minimal changes in employment levels, indicating varied growth across different sectors of the economy.

Unemployment Rates

The unemployment rate in August held steady at 4.2 percent, corresponding to approximately 7.1 million unemployed individuals. Compared to the same period last year, when the unemployment rate was 3.8 percent with 6.3 million people unemployed, these figures indicate an increase in joblessness. Among major worker groups, adult men had an unemployment rate of 4.0 percent, while adult women had a slightly lower rate of 3.7 percent. Teenage unemployment remains notably high at 14.1 percent.

Significant disparities exist across racial and ethnic groups: the unemployment rate for African American individuals was 6.1 percent, whereas Caucasians stood at 3.8 percent, Asians at 4.1 percent, and Hispanics at 5.5 percent. These differences highlight the complex socio-economic factors influencing the job market for various demographic groups.

Wage Growth and Average Workweek

August saw a modest rise in average hourly earnings for employees on private nonfarm payrolls, with wages increasing by 14 cents, or 0.4 percent, to reach $35.21. Over the past year, wages have seen a growth of 3.8 percent, reflecting gradual increases in worker compensation amid an evolving labor market. For private-sector production and nonsupervisory employees, average hourly earnings rose by 11 cents, bringing the hourly rate to $30.27.

Additionally, the average workweek for all employees slightly increased by 0.1 hour to 34.3 hours. Within the manufacturing sector, the average workweek held steady at 40.0 hours, while overtime edged up marginally. Production and nonsupervisory employees on private nonfarm payrolls worked an average of 33.7 hours, unchanged from previous reports. These figures suggest that while there are incremental gains in earnings, the number of hours worked has shown minimal variation, indicating steady labor demand across most sectors.

Revisions to Previous Months' Employment Data

It's essential to take note of the adjustments made to previous employment figures as reported in the August jobs data. June's total nonfarm payroll employment was revised down by 61,000 jobs, changing the initial estimate from 179,000 to 118,000. Similarly, July's figures saw a downward revision of 25,000 jobs, adjusting the count from 114,000 to 89,000. These revisions are a crucial part of understanding the broader employment trends, as they provide a more accurate picture of job growth over the summer months.

Such revisions are not uncommon and result from additional reports received from businesses and government agencies since the last published estimates. Seasonal adjustments and other recalculations also play a role in refining these numbers. The cumulative effect of these revisions for June and July is a reduction of 86,000 jobs from the initially reported figures. This downward adjustment indicates that the labor market was slightly weaker than previously believed during those months.

These changes underscore the importance of continually updating employment data to reflect the most accurate state of the labor market. As new information becomes available, these revisions help policymakers, economists, and the public make more informed decisions based on the latest, most reliable data. While the August figures show modest job gains, these historical adjustments highlight the variable nature of employment trends and the need for ongoing analysis.

For further reading, check out our other blogs on topics related to the job market.

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