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Friday, September 04, 2015

'Job Growth Weakens in August'

Dean Baker:

Job Growth Weakens in August: The rate of wage growth was under 2.0 percent for the last 3 months.
The Labor Department reported that the economy added 173,000 jobs in August, somewhat less than most predictions. However, the prior two months' numbers were revised upward by 44,000, bringing the average gain over the last three months to 221,000. The story on the household side was mixed. The unemployment rate dropped to 5.1 percent, as employment increased by 196,000. However the employment-to-population ratio (EPOP) was little changed at 59.4 percent, a number that is still three  percentage points below the pre-recession peak. ...
While the drop in unemployment in the August report is encouraging, the overall report is not especially positive. There is no evidence that wage growth is accelerating and there is a real risk that employment growth is slowing. The big question is whether the 140,000 private sector job growth in August is the new trend or whether it was weakened by the strong growth in prior months.

Calculated Risk:

The unemployment rate decline in August to 5.1%.

This was well below expectations of 223,000 jobs, however revisions were up, the unemployment rate declined significantly, and there was some wage growth ... overall a decent report.

    Posted by on Friday, September 4, 2015 at 08:32 AM in Economics, Unemployment | Permalink  Comments (137)


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