Photo from US Department of Labor
The Employment Situation for August 2024 reports that total nonfarm payroll employment increased by 142,000, while the unemployment rate remained relatively unchanged at 4.2%. This is a slight uptick compared to last year when the unemployment rate was 3.8%. The number of unemployed people in August stood at 7.1 million, an increase from 6.3 million a year earlier.
Job gains were notable in construction, which added 34,000 jobs, and health care, which contributed 31,000 jobs. However, manufacturing saw a decrease, with employment dropping by 24,000, particularly in durable goods industries. Employment remained stable in other sectors, including mining, retail trade, and transportation.
The labor force participation rate held steady at 62.7%, while the employment-population ratio remained unchanged at 60.0%. Additionally, 4.8 million people were working part-time for economic reasons, up from 4.2 million a year ago, signaling potential underemployment in the labor market.
In terms of earnings, average hourly wages increased by 0.4% to $35.21, marking a 3.8% increase over the past year. The average workweek for all private employees edged up slightly to 34.3 hours.
Overall, the data shows moderate job growth, with a slight increase in the unemployment rate and wages continuing to rise. However, certain sectors like manufacturing are facing declines, and part-time employment for economic reasons is rising, reflecting some underlying challenges in the labor market.
