In August, there was an increase of 187,000 jobs, but the unemployment rate rose to 3.8%.

• In August, there was an increase of 187,000 in nonfarm payrolls.
• The unemployment rate reached 3.8% in August, the highest it has been since February 2022.
• Average hourly earnings rose by 0.2% on a monthly basis and 4.3% on a yearly basis.

Employment Overview

According to the newest data from the U.S. Bureau of Labor Statistics, the total number of nonfarm payroll employment in August increased by 187,000. However, this growth falls short of the average gain of 271,000 observed over the past 12 months. While sectors such as health care, leisure and hospitality, social assistance, and construction experienced employment growth, the transportation and warehousing sector saw a noticeable decline.

Insights on Unemployment Rate

The unemployment rate witnessed a slight increase, reaching 3.8 percent in August, which marks a 0.3 percentage point rise from the previous month. This equates to an additional 514,000 individuals unemployed, bringing the total to 6.4 million. In comparison, the numbers remain relatively consistent with a 3.7 percent unemployment rate and 6.0 million unemployed individuals reported in the previous year.

Earnings and Workweek Duration

In August, average hourly earnings showed a modest increase. Earnings for all private nonfarm payroll employees rose by 8 cents to reach $33.82, representing a 4.3 percent yearly increase. Specifically, hourly earnings for private-sector production and nonsupervisory employees increased by 6 cents, averaging at $29.00. Additionally, the average workweek duration for all private nonfarm payroll employees experienced a slight uptick, resulting in a 34.4-hour workweek.

Revised Figures for June and July

Previous employment data underwent revisions, revealing adjustments to the numbers. The employment change in June was reduced by 80,000, revising the initial estimate of +185,000 to +105,000. Similarly, July's figures were downwardly revised by 30,000, adjusting the number from +187,000 to +157,000. Consequently, the combined employment figures for these two months now stand 110,000 less than the previously reported numbers.