United States: Non-farm payrolls post another solid gain in August
September 2, 2016
Non-farm payrolls grew 151,000 in August, which followed July’s upwardly-revised increase of 275,000 (previously reported: +255,000) and fell short of the 165,000 gain that the markets had expected. The result represented a record period of 71 consecutive months of job creation in the U.S. economy. The strong jobs figures observed in July and August are likely to put pressure on the Federal Reserve to tighten monetary policy in September, although most experts think the Fed will not raise interest rates until its December meeting.
The private sector continues to be responsible for the bulk of new hiring after adding 122,385 jobs in August. The largest gains were registered in the professional business services. The public sector added 25,000 jobs in August.
The unemployment rate and labor participation, which are derived from a different survey, remained steady at July’s 4.9% and 62.8%, respectively.
Author: Ricardo Aceves, Senior Economist