(Steve Wilson, The Center Square) According to data released by the U.S. Bureau of Labor Statistics, total nonfarm payroll employment grew by 142,000 in August, but the nation’s unemployment rate remained at 4.2%.
According to the report, the jobs numbers were in line with average job growth in recent months, but lagged behind the average monthly gain of 202,000 new positions over the past year.
The release follows a bombshell last month when the BLS admitted it had been lying to the public by vastly overprojecting the number of job additions for the past year. The August projections are similarly likely to be revised downward when the actual data become available.
Democrats are hoping that overall job losses will encourage a larger rate cut from the Federal Reserve in September—possibly half a point—from some of the highest interest rates in decades.
That would give the U.S. economy a convenient jolt just ahead of the November election.
Yet, it must also navigate the precarious waters of a recession, which is defined by more than two quarters of negative growth in the gross-domestic product. Too many job losses in consecutive months would offer a strong indication that the weak economy was heading in that direction, particularly after recent antitrust investigations from the Justice Department last week sent stocks spiraling downward.
There are 7.1 million unemployed nationally, keeping the national labor force participation rate at 62.7% in August.
The report also says there were 5.6 million people in August that are “not in the labor force, but are seeking a job.” The bureau says these people were not counted as unemployed because they were not actively looking for work during the four weeks before the survey or were unavailable to take a job.
The jobless rate is higher than last year, when it was at 3.8% and the number of unemployed then was at 6.3 million.
According to the surveys of 60,000 households and 119,000 businesses and government agencies by the bureau, the majority of job gains were in the construction and health care sectors.
The construction sector gained 34,000 jobs in August, nearly 79% higher than the average monthly gain of 19,000 in the last 12 months.
Even though the health care sector added 31,000 jobs in August, that was a reduction of nearly half of the 12-month average of 60,000. The biggest gain was in ambulatory health care services, which grew by 24,000 jobs.
The manufacturing sector shrunk by 24,000 jobs in August, with growth remaining static for the past 12 months.
Among worker groups, the rates were little changed in August. Adult men had an unemployment rate of 4%, trailing adult women (3.7%). Teenage unemployment was at 14.1% and showed little movement.
Among ethnic groups, whites had the lowest unemployment at 3.8%, followed by Asians (4.1%), Hispanics (5.5%) and blacks (6.1%).
Also showing little change from July to August was the number of people (4.8 million) who seek full-time employment, but are working part-time. That number was 600,000 higher than the same time last year.
Headline USA’s Ben Sellers contributed to this report.
