September 01, 2023
In August, the U.S. Bureau of Labor Statistics reported a 187,000 increase in total nonfarm payroll employment alongside a slight rise in the unemployment rate to 3.8 percent. Key sectors showing employment growth included health care, leisure and hospitality, social assistance, and construction, while the transportation and warehousing sector saw a decline in employment.
The release comprises data from two monthly surveys: the household survey, which tracks labor force status and unemployment by demographic characteristics, and the establishment survey, which measures nonfarm employment, working hours, and earnings by industry, providing valuable insights into the labor market’s current state.
Household Survey Data
In August, the U.S. Bureau of Labor Statistics reported that the unemployment rate increased by 0.3 percentage points to 3.8 percent, with the number of unemployed individuals rising by 514,000 to 6.4 million, slightly different from the previous year.
Among specific demographic groups, adult men, Whites, and Asians saw their unemployment rates rise, while rates for adult women, teenagers, Blacks, and Hispanics remained relatively stable. The number of job losers and those completing temporary jobs increased by 294,000, offsetting a decrease in July, while new entrants to the job market rose to 597,000. The number of individuals unemployed for less than 5 weeks and the long-term unemployed both increased slightly.
The labor force participation rate rose by 0.2 percentage points to 62.8 percent, and the employment-population ratio remained unchanged at 60.4 percent. Additionally, the number of people employed part-time for economic reasons remained steady at 4.2 million. Those not in the labor force but desiring a job numbered 5.4 million, while 1.5 million were marginally attached to the labor force, and 386,000 were classified as discouraged workers.
Establishment Survey Data
In August, total nonfarm payroll employment in the United States increased by 187,000 jobs, which was lower than the average monthly gain of 271,000 over the past year. Notable sectors that saw job growth included health care (+71,000), leisure and hospitality (+40,000), social assistance (+26,000), and construction (+22,000). However, employment in transportation and warehousing declined by 34,000, driven by a significant drop in truck transportation employment. The professional and business services sector remained relatively stable, with a gain of 19,000 jobs, although temporary help services continued to trend down. Information employment decreased by 15,000 due to strike activity in the motion picture and sound recording industries. Across various major industries, there was little change in employment, including mining, manufacturing, wholesale and retail trade, financial activities, other services, and government.
Additionally, average hourly earnings for all private nonfarm employees increased by 0.2 percent in August, reaching $33.82, reflecting a 4.3 percent increase over the past 12 months. The average workweek for all employees edged up slightly by 0.1 hour to 34.4 hours, with manufacturing maintaining a 40.1-hour workweek. It’s worth noting that employment data for June and July were revised down, resulting in a combined 110,000 jobs lower than previously reported due to additional reports from businesses and government agencies and recalculations of seasonal factors.
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