US August Unemployment Rate

In August, the US saw the addition of 187,000 jobs. However, there was a surprising rise in unemployment, signaling a potential slowdown in the labor market. Data indicates that the unemployment rate reached 3.8%, its highest since February 2022, defying expectations which had it pegged to remain at 3.5%.

Furthermore, economists, who had predicted an addition of 170,000 jobs, were proven wrong. Additionally, revised data from June and July indicates that 110,000 fewer jobs were created than initially reported. Over the past year, the monthly average for job gains stands at 271,000.

While wages grew by 0.2% monthly and 4.3% annually, these numbers are slightly below predictions. This suggests workers have less leverage in the job market. Moreover, people's participation in the labor market touched 62.8%, the highest since February 2020, and there was a slight rise in average weekly work hours.

Breaking it down by sectors:

- Health care saw the most significant growth with 71,000 new jobs.

- Leisure and hospitality added 40,000, though it's still below its pre-pandemic average.

- The construction sector added 22,000 jobs.

- Transportation and warehousing faced a drop, losing 34,000 jobs, significantly impacted by the Yellow trucking company's bankruptcy.