According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment increased by 142,000 in August, and the unemployment rate changed little at 4.2 percent. Notable, job gains occurred in health care and construction. The U.S. Bureau of Labor Statistics reported these findings based on two monthly surveys: the household survey, which assesses labor force status, including unemployment by demographic characteristics, and the establishment survey, which measures nonfarm employment, hours, and earnings by industry.

Household Survey Data

In August, the U.S. labour market showed minimal change in key indicators compared to the previous month. The unemployment rate held steady at 4.2%, reflecting stability in the number of unemployed individuals at 7.1 million, which is higher than a year ago. Among different demographic groups, unemployment rates remained largely unchanged: adult men at 4.0%, adult women at 3.7%, teenagers at 14.1%, Whites at 3.8%, Blacks at 6.1%, Asians at 4.1%, and Hispanics at 5.5%. The number of people on temporary layoff decreased notably by 190,000, offsetting previous increases, while the number of permanent job losers remained steady at 1.7 million.

Labor force participation and employment-population ratios remained unchanged at 62.7% and 60.0%, respectively, over the past year. The number of part-time workers who would prefer full-time jobs held steady at 4.8 million, up from the previous year’s 4.2 million. Additionally, 5.6 million individuals not in the labour force desired employment but were not actively seeking work, with 1.4 million marginally attached to the labour force. Among the marginally attached, 367,000 were discouraged workers who believed no jobs were available to them, reflecting little change from previous months.

Establishment Survey Data

In August, total nonfarm payroll employment increased by 142,000, consistent with recent monthly trends but below the 12-month average gain of 202,000. Job growth was led by the construction and health care sectors, with construction adding 34,000 jobs, surpassing its prior monthly average of 19,000. Heavy and civil engineering construction contributed 14,000 new jobs, and non-residential specialty trade contractors saw a similar increase. The health care sector added 31,000 jobs, which was below its prior average monthly gain of 60,000, with significant contributions from ambulatory health care services (+24,000) and hospitals (+10,000). Social assistance also continued its upward trend with 13,000 new jobs, though this growth was slower compared to the previous year.

Manufacturing employment declined by 24,000, with durable goods industries losing 25,000 jobs, marking a slight downward trend for the sector over the year. Other major industries, such as mining, retail, and financial activities, saw little change in employment levels. Meanwhile, average hourly earnings for all private nonfarm employees increased by 0.4% to $35.21 in August, and earnings for production and nonsupervisory employees rose to $30.27. The average workweek for all private employees edged up to 34.3 hours, while overtime in manufacturing increased slightly to 3.0 hours.

The total nonfarm payroll employment figures for June and July were revised downward, with June’s job growth reduced by 61,000, from 179,000 to 118,000, and July’s revised down by 25,000, from 114,000 to 89,000. As a result, combined employment gains for these two months are 86,000 lower than previously reported. These revisions are due to updated data from businesses and government agencies, as well as adjustments for seasonal factors.

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