In August, the U.S. saw a smaller increase in employment numbers than analysts had predicted, while the unemployment rate experienced a slight drop from the previous month, revealed in the latest Bureau of Labor Statistics report released last Friday.
The report showed that the economy gained 142,000 jobs in August, failing to meet the expectations of economists who had forecasted an increase of 161,000 jobs. The unemployment rate edged down from 4.3% in July—its highest level since October 2021—to 4.2% in August.
Job growth was mainly seen in the construction and healthcare sectors, which saw additions of 34,000 and 31,000 jobs respectively. The participation rate in the labor force remained steady at 62.7%, consistent with figures from the last year.
The report also highlighted, “The number of people employed part time for economic reasons was little changed at 4.8 million in August,” mentioning that this number had risen from 4.2 million the previous year. These individuals were seeking full-time employment but were working part-time either due to reduced hours or the unavailability of full-time positions.
Recent months have observed the Bureau of Labor Statistics adjusting job growth figures downward, including a reduction of 25,000 in July and 61,000 in June. The bureau admitted last month that it had overestimated job creation by 818,000 for the April 2023 to March 2024 period.
The reception of the report by economists suggests ongoing concerns over the economy, with a potential recession causing global market downturns last month.
E.J. Antoni of the Heritage Foundation remarked on the shift in job quality, stating, “All of the net job growth in Aug was part-time employment (+527k), while full-time jobs plummeted (-438k); we’re hemorrhaging higher-paying jobs w/ benefits and replacing them with multiple part-time ones – these higher payroll numbers are a sign of impoverishment, not growth.”
Moreover, Job Creators Network CEO Alfredo Ortiz commented on the report, indicating a deeper economic struggle: “Job creation was below expectations, and half of new positions were created in the unproductive government or quasi-government healthcare and social services sector,” he mentioned, also noting, “A record 8.2 million Americans have second jobs. Prior months’ job creation was significantly revised down – again. So far this year, the number of unemployed Americans has increased by one million.”
