Dive Brief:
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Total non-farm payroll employment increased by 151,000 in August, the U.S. Bureau of Labor Statistics reported Friday. Employment continued to trend up in several service-providing industries, but retail employment was little changed, according to the report. That missed estimates from economists polled by Reuters, who had expected 180,000 new jobs in the period.
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The number of unemployed persons was essentially unchanged at 7.8 million in August, and the unemployment rate was 4.9% for the third month in a row, missing the Reuters economists' estimate for 4.8% unemployment. Both measures have shown little net movement over the year, according to the government.
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In August, average hourly earnings for all employees on private non-farm payrolls rose by 3 cents to $25.73, and average hourly earnings of private-sector production and non-supervisory employees rose by 4 cents to $21.64. Over the year, average hourly earnings have risen by 2.4%.
Dive Insight:
American employers had kept hiring steady for two straight months this summer, but August saw that decline somewhat, continuing the economy’s consistent but marginal growth. Wage gains that had finally begun to materialize also eased up.
The good news for retailers, as far as their customers go, is that modest wage gains continue to outpace inflation.
The labor force participation rate (the percentage of employable Americans who have or are looking for a job) remained at 62.8%. That’s a low number that has been consistent for years now and is helping keep wages low, something that economists say is contributing to the troubled sales environment that so many retailers note in their reports.
The report is fueling speculation about what the Federal Reserve will (or should) do about interest rates. While the unemployment rate is at a healthy point, wages are still mostly stuck and inflation is low, something of a mystery that concerns economists, who fear that jobs will be lost in a recession.
