Lackluster growth in U.S. payrolls
August's jobs growth at 128,000, in line with expectations
By Greg Robb, MarketWatch
Last Update: 11:57 AM ET Sep 1, 2006
WASHINGTON (MarketWatch) -- U.S. firms continued to hire workers at a steady, if lackluster, pace in August, as wage growth moderated, the Labor Department said Friday.
U.S. nonfarm payrolls grew by 128,000 jobs in August, in line with expectations and with the recent trend. The unemployment rate inched lower to 4.7% in August from 4.8% in July.
Economists said the report would likely keep the Federal Reserve on track to hold interest rates steady again when policymakers meet later this month.
Average hourly earnings rose by 2 cents, or 0.1%, to $16.79. Average wages were expected to rise 0.3%. Earnings were revised slightly higher in July to a gain of 0.5% compared with the initial estimate of a 0.4% gain. Read full government release.
Job growth came in very close to forecasts by Wall Street economists, according to a survey conducted by MarketWatch.
The reaction to the report in financial markets was muted, in part because the data were in-line with expectations and also because many traders aren't at work at the start of the three-day holiday weekend.
There was a flurry of economic results released Friday, all with the general theme of a softening, but not free-falling, economy.
According to the latest employment release, seasonally adjusted payrolls in June and July were revised higher by a cumulative 18,000.
"The softer trend in employment growth is still in place, though the numbers are certainly not melting down," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Such a growth trend is quite clear. Payroll growth has averaged 117,000 per month in the past four months, measurably weaker than the 176,000 pace in the first quarter.
Average weekly earnings fell to $567.50.
Hourly earnings have increased 3.9% in the past year.
The unspectacular job and wage growth may help keep the Fed firmly on the sidelines at its Sept. 20 meeting, when the Federal Open Market Committee will decide whether to hold monetary policy steady again after the first pause in August that followed more than two years of rate hikes.
A survey of some 400,000 business establishments showed private payrolls increased by 111,000. Government added 17,000 jobs.
Jobs in manufacturing industries fell by 11,000, the third decline in the past four months.
The construction sector added 17,000 jobs in August, the strongest pace since February.
Service producing jobs rose by 118,000, led by the hiring of teachers for the upcoming school year.
Education and health services employment grew by 60,000, the fastest pace since October 2004.
Jobs in the retail sector fell by 14,000. This was the fourth decline in the past five months in the sector.
Leisure and hospitality industries added 10,000 jobs.
A separate survey of some 60,000 households showed employment increased by 250,000 to 144.6 million, while unemployment fell by 86,000 to 7.1 million.
Greg Robb is a senior reporter for MarketWatch in Washington.
NOTE: This is not the entire article; I pulled a few things that did not relate to employment.
By Greg Robb, MarketWatch
Last Update: 11:57 AM ET Sep 1, 2006
WASHINGTON (MarketWatch) -- U.S. firms continued to hire workers at a steady, if lackluster, pace in August, as wage growth moderated, the Labor Department said Friday.
U.S. nonfarm payrolls grew by 128,000 jobs in August, in line with expectations and with the recent trend. The unemployment rate inched lower to 4.7% in August from 4.8% in July.
Economists said the report would likely keep the Federal Reserve on track to hold interest rates steady again when policymakers meet later this month.
Average hourly earnings rose by 2 cents, or 0.1%, to $16.79. Average wages were expected to rise 0.3%. Earnings were revised slightly higher in July to a gain of 0.5% compared with the initial estimate of a 0.4% gain. Read full government release.
Job growth came in very close to forecasts by Wall Street economists, according to a survey conducted by MarketWatch.
The reaction to the report in financial markets was muted, in part because the data were in-line with expectations and also because many traders aren't at work at the start of the three-day holiday weekend.
There was a flurry of economic results released Friday, all with the general theme of a softening, but not free-falling, economy.
According to the latest employment release, seasonally adjusted payrolls in June and July were revised higher by a cumulative 18,000.
"The softer trend in employment growth is still in place, though the numbers are certainly not melting down," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Such a growth trend is quite clear. Payroll growth has averaged 117,000 per month in the past four months, measurably weaker than the 176,000 pace in the first quarter.
Average weekly earnings fell to $567.50.
Hourly earnings have increased 3.9% in the past year.
The unspectacular job and wage growth may help keep the Fed firmly on the sidelines at its Sept. 20 meeting, when the Federal Open Market Committee will decide whether to hold monetary policy steady again after the first pause in August that followed more than two years of rate hikes.
A survey of some 400,000 business establishments showed private payrolls increased by 111,000. Government added 17,000 jobs.
Jobs in manufacturing industries fell by 11,000, the third decline in the past four months.
The construction sector added 17,000 jobs in August, the strongest pace since February.
Service producing jobs rose by 118,000, led by the hiring of teachers for the upcoming school year.
Education and health services employment grew by 60,000, the fastest pace since October 2004.
Jobs in the retail sector fell by 14,000. This was the fourth decline in the past five months in the sector.
Leisure and hospitality industries added 10,000 jobs.
A separate survey of some 60,000 households showed employment increased by 250,000 to 144.6 million, while unemployment fell by 86,000 to 7.1 million.
Greg Robb is a senior reporter for MarketWatch in Washington.
NOTE: This is not the entire article; I pulled a few things that did not relate to employment.
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