The Bureau of Labor Statistics released a new report on Friday, which showed that despite a still struggling unemployment rate, the country saw some good news regarding rising wages and payroll.
Nonfarm payrolls rose by 315,000 jobs in August, just missing the Dow Jones estimate of 318,000 jobs. The number is still drastically less than the 526,000 nonfarm jobs added in July and represents the lowest monthly gain since April 2021.
The report also showed that wages increased, although slightly lower than expected. Average hourly earnings were up 5.2% in August from a year ago. Professional and business services had the highest payroll increases, with 68,000. Healthcare and retail followed with 48,000 and 44,000 respectively. Leisure and hospitality saw smaller gains, with just over 31,000 for August. The sector had been leading the way post-pandemic, with averages of 90,000 in the first seven months of 2022.
Meanwhile, the unemployment rate rose higher than expected, hitting 3.7%. That’s two-tenths of a percentage point higher than forecasted. A broader measurement includes discouraged workers, and part-time job holders climbed from 6.7% to 7%.
The market saw substantial gains after the release of the report. Michael Arone, Chief Investment Strategist at State Street Global Advisors, said the report had “something for everybody.”
“This report supports the Fed’s ability to engineer a soft landing. Markets like it,” he said.
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