US Adds 315,000 Jobs as Participation Jumps and Wages Rise

(Bloomberg) — US employers added jobs at a healthy, yet more moderate pace in August, and participation posted a sizable increase, offering little evidence of any kind of definitive slowdown despite a jump in unemployment.

Nonfarm payrolls increased 315,000 last month following a revised 526,000 advance in July, a Labor Department report showed Friday. The unemployment rate unexpectedly rose to 3.7% as the participation rate climbed.

Economists projected an almost 300,000 gain in payrolls and a 3.5% jobless rate, based on the median estimates in a Bloomberg survey.

Despite moderating job growth, the still-solid employment gain points to a healthy appetite for labor amid high inflation, rising interest rates and an uncertain economic outlook. Such demand, along with repeated pay raises, continues to underpin consumer spending, making the Federal Reserve’s task of slowing down the economy to tame the worst inflation in decades even more difficult.

However, the pickup in participation, along with a deceleration in monthly wage growth, is likely welcome news for the Fed.

Short-term Treasury yields fell, while S&P 500 futures rose and the dollar extended losses on the day. Investors slightly pared bets that the Fed will raise interest rates by 75 basis points at its meeting later this month, though traders continued to see that as the most likely outcome, with about a 60% probability priced in.

The labor force participation rate — the share of the population that is working or looking for work — advanced to 62.4%, and the rate for workers ages 25-54 rose by the most since June 2020 to 82.8%. Teen participation also surged.

The job gains were led by professional and business services, health care and retail trade. Leisure and hospitality posted the smallest payrolls gain since a decline in December 2020.

 

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

Follow us on social media for the latest updates in B2B!

Image

Latest

Women's empowerment
Seizing the Narrative: The Transformative Impact of Storytelling on Women’s Empowerment
April 19, 2024

With gender equality becoming a significant global agenda, the narrative around women’s empowerment is more relevant than ever. Amid rising awareness and shifting societal norms, women are increasingly seeking avenues for self-expression and empowerment. A recent study by the Global Gender Gap Report highlights that while progress is being made, substantial efforts are still […]

Read More
V2G technology
Plug into the Future: Decoding V2G for Utility Applications
April 19, 2024

Brian Rudy from Verizon IoT and Melissa Chan of Fermata Energy explore the cutting-edge potential of vehicle-to-grid (V2G) technology at DISTRIBUTECH 2024. Their discussion highlights how this innovation transforms electric vehicles into dynamic energy storage units, capable of stabilizing the grid by storing and discharging power as needed. This technology represents a significant shift […]

Read More
zero trust architecture
Secure Grid Modernization with Zero Trust Architecture
April 19, 2024

Ray Bauer of Verizon Business engages with Del Rodriguez from Palo Alto Networks at DISTRIBUTECH 2024. Rodriguez shares insights into the significance of cybersecurity within the utility sector, particularly in light of increasing cyber threats and the convergence of IT and operational technology (OT). Bauer and Rodriguez discuss Palo Alto Networks’ initiatives to enhance […]

Read More
private wireless networks
Private Wireless Networks
April 19, 2024

Verizon host Wayne Weeks discusses the evolving utility industry with John Gaster, CEO of KSI Data Sciences at DISTRIBUTECH 2024. Together, they explore how KSI focuses on harnessing data from remote sensing devices to enhance the safety, efficiency, and cost-effectiveness of utility operations. Gaster emphasizes the significant role of AI and machine learning in […]

Read More