The U.S. economy added 201,000 jobs in August and the unemployment rate is at 3.9 percent.
Economic predictions forecasted an additional 191,100 new jobs with the unemployment rate falling to 3.8 percent.
The Department of Labor recently stated that average hourly earnings increased by 2.9 percent in August on an annualized basis. This is higher than the expected 2.7 percent wage growth which equates to an increase of 10 cents to average hourly earnings from the month of July to $27.16.
Payrolls in the private sector increased by 204,000. The mining sector added 6,000 new jobs while construction added 23,000, bringing its total to over 300,000 for 2018. However, manufacturing lost 3,000 jobs, even with signs of strengthening in the manufacturing sector.
The reports for the two previous months were revised lower. June’s jobs numbers fell from 248,000 to 208,000, while July’s jobs numbers declined from 157,000 to 147,000. The economy has seen average monthly gains of 196,000 jobs over the past 12 months.
The comprehensive measure of unemployment, which included discouraged workers and those at jobs part-time for economic reasons, fell to 7.4 percent from 7.5 percent.
“The August jobs report shows continued, strong job growth with 201,000 jobs created and an unemployment rate holding at 3.9%. More than 4 million jobs have been created since November 2016. Since 1970, the unemployment rate has registered below 4% just nine times; four of those months have been recorded during 2018. It is remarkable to see steady positive news regarding job growth month after month,” said U.S. Secretary of Labor Alexander Acosta.
The stronger than expected jobs number is particularly notable because August has produced disappointing jobs numbers in recent years. Job creation came in below expectations in August 0f 2017, 2016, and 2015.
The economy is expanding steadily, fueled by tax cuts, confident consumers, business investment and government spending.
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