Economy adds 201000 jobs in August

President Donald Trump speaks at a rally at the Rimrock Auto Arena in Billings Mont. Thursday Sept. 6 2018

The U.S. economy added jobs for the 95th straight month in August, a record-setting streak.

"Though slightly tongue-in-cheek, we think today's employment report serves as a capstone to one of the greatest labor market recovery periods of all time, with the economy creating new jobs in an impressive manner, and wage rates finally rising nicely", Rieder said in a note.

When it comes to the USA jobs report, for years now it hasn't been the number of jobs created or the headline unemployment rate that's been in focus, but the mystery of the American paycheck.

The reports for the two previous months were revised lower. The economy needs to create 120,000 jobs a month to keep up with growth in the working-age population.

Oil and gas extraction, which is categorized under mining by the BLS, saw a slight decrease of 700 jobs in the month of August.

Strengthening wage growth underscores tightening labour market conditions and cements expectations for a third interest rate increase from the Federal Reserve this year when policymakers meet on September 25-26.

This developing report will be updated.

That raised the annual increase in wages to 2.9% in August, the largest increase since June 2009, from 2.7% in July.

The drop last month was fuelled by a loss of 92,000 part-time positions.

The unemployment rate was unchanged at 3.9 per cent last month.

The United States and China have slapped retaliatory tariffs on a combined $100 billion of products since early July.

The jobless rate came in under 4 percent for the fourth time this year.

Notably, the manufacturing sector lost about 3,000 jobs in August. That was the first drop since July 2017 and followed an increase of 18,000 in July.

USA businesses added 204,000 jobs while federal, state and local governments lost 3,000.

"There is certainly nothing in this report that would tell the Fed they shouldn't move ahead with their plans to raise rates", said Betsey Stevenson, a labor economist at the University of MI who served on the White House Council of Economic Advisers during the Obama administration. Private employment rose by 204 000, compared with a median estimate of 194 000.

But August's gains could be revised higher; this has happened in 14 of the last 17 years, according to Rick Rieder, who manages $1.9 trillion as BlackRock's chief investment officer of global fixed income.

The Labor Department's closely watched employment report published on Friday also showed slack in the jobs market was rapidly diminishing, with a broader measure of unemployment falling to a level not seen since 2001.

Related:

Comments

Latest news

Bernie Sanders introduces 'Stop BEZOS Act' in the Senate
Amazon , aware of the Vermont senator's plans to launch such a bill, pre-empted the announcement in an August blog post . Anecdotes shared by current and former Amazon employees corroborate these findings.

China's record trade surplus with United States adds fuel to trade war fire
On Thursday Apple joined Cisco , HP Enterprise, and other tech firms in sending a letter to U.S. Trade Representative Robert Lighthizer, warning of the potential damage tariffs could cause.

Trudeau Threatens Relationship With The U.S.
The notice had to be sent Friday for Mexico's outgoing government to sign the new deal before it leaves office December 1. The grueling talks are aimed at getting to join a tentative U.S. -Mexico agreement to replace the 24-year-old NAFTA.

Chelsea boss Sarri loving the Premier League
It is the first time that Sarri, who started out as a banker, has coached outside Italy. "I know less about the teams I face and the opponents".

Other news