According to a report from Bloomberg, the U.S. economy had a shaky August, with the unemployment rate rising and wages climbing at a lower rate than what was expected.
The report found that the unemployment rate rose to 4.3 percent, Employee Benefit Adviser reported. The average hourly earnings rose 0.1 percent month over month and 2.5 percent year over year. Nonfarm payrolls climbed 156,000, and June to July revisions subtracted 41,000 jobs. On a positive note, the manufacturing industry added 36,000 jobs.
“This was a softer report, but it doesn’t change the overall picture, which is the economy and the labor market are in good shape,” Gus Faucher, a chief economist at PNC Financial Services Group in Pittsburgh, said. “August tends to be a little bit softer, so we can certainly see an upwards revision over the next couple of months, and wage growth will accelerate as the labor market tightens.”
As far as the payrolls figure, it seems to be a “decent number, in line with a labor market that’s gradually maturing,” Greg Daco, chief U.S. economist at Oxford Economics, which projected a 160,000 employee increase, said. “Demand for labor is still solid. Wage growth remains modest.”
According to Employee Benefit Adviser, this is the seventh straight August that the government’s initial payrolls print has not reflected the median estimate of economists.
