US Nonfarm Payroll Increases by 142,000 in August; Unemployment Inches Lower to 4.2%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 142,000 in August. This is below the average monthly gain of 202,000 over the previous 12 months.

Notable job growth occurred in the following sectors in August:

• Construction added 34,000 jobs, higher than the average monthly gain of 19,000 over the prior 12 months.
• Health care added 31,000 jobs, about half the average monthly gain of 60,000 over the past 12 months.
• Employment in social assistance continued its upward trend, adding 13,000 positions, but at a slower pace than the average monthly gain of 21,000 over the prior 12 months.

Employment showed little change in other major industries, including mining, quarrying, and oil and gas extraction; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; other services; and government.

Both the unemployment rate, 4.2%, and the number of unemployed people, 7.1 million, changed little in August. These measures are higher than a year earlier, when the jobless rate was 3.8% and the number of unemployed people was 6.3 million.

Revisions

Monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. The change in total nonfarm payroll employment for June was revised down by 61,000—from 179,000 to 118,000—and the change for July was revised down by 25,000—from 114,000 to 89,000. With these revisions, employment in June and July combined is 86,000 lower than previously reported.