JOBS REPORT: Nearly 500k fewer payrolls than expected in August, economists worry
Only 235,000 new payrolls were added nationwide in August according to the latest jobs report. Dow Jones experts expected it to rise to 700,000. Jobs have yet to recover the same number of jobs lost in April 2020, even 16 months later.
First, the hospitality and leisure industry led in most new payrolls over the past six months. Hospitality and leisure alone provided roughly 350,000 jobs each month, more than all of August. Now, the industry boasts an unemployment rate of 9.1%, nearly four points higher than the nationwide rate of 5.2%. Across the nation unemployment dropped only by 0.2% since July. Next, professional and business services contributed the most jobs in August with 74,000.
A minority, roughly 400,000 in August, blamed a pandemic-related reason was keeping them from work. The total using the excuse is 5.6 million. There are 8.4 million unemployed Americans total. Today 3.2 million have remained unemployed for over 27 weeks. That’s roughly 240,000 less than July. But it’s still 2.1 million higher than it was in February 2020.Unemployment overall is still lower than it was before March 2020. Employment placement firm Indeed estimates there are 10.5 million job openings currently.
Donald Trump Jr. reacted to the report in a tweet Friday. “Another disastrous economic report for the administration,” Trump said. “How long do you think this is sustainable for?”
Meanwhile wages rose 4.3% on a year-over-year basis. They also rose 0.6% since last month.
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