United States non-farm employers added 315,000 jobs during August and has continued it 20-month positive job growth streak. However, the job number is notably lower in comparison to July’s job growth. Moreover, the unemployment rate edged up as well and currently stands at 3.7%.
Job gains is a strength for inflation struck economy
The Labor Department published August job numbers on Friday and non-farm payrolls rose by 315,000. Previously, a Bloomberg’s survey projected an increase of 300,000 jobs during August. However, the numbers reported by Labor Department exceeded the projection. A positive job growth number is also helping in easing the pressure on the economy which is witnessing an ominously high inflation. Despite this rise in jobs in August, the number has decreased since July. In July alone, more than half a million managed to secure a job. Still, this Aust number is an area of strength for the economy where the Federal Reserve has raised the inflation to burb the soaring inflation.
Slight rise in unemployment rate
On the other hand, the unemployment rate rose to 3.7% during August which is unexpected. Previously, the unemployment rate stood 3.5% during July. Although the unemployment has slightly itched up but almost 800,000 people who were not part of the job hunt are now actively seeking jobs. Some of them managed to land a job and some are still finding it. Therefore, the people coming from the sidelines and looking for jobs may be one of the reasons of increases unemployment rate. However, the unemployment rate is still pretty low compared to historical standards. Furthermore, there are plenty of job openings out there and people looking for jobs will soon find work.
Average wage growth is stabilizing
In addition, the increase in participants hunting for jobs will ease the pressure on monthly wage growth. persistent mismatch between labor supply and demand has driven businesses to bid up wages. However, there are signs that the job demand and supply are coming in line which is a good omen for the economy. Average hourly earnings rose 0.3% from the prior month and were up 5.2% from a year earlier.
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