US Nonfarm Payroll Increases by 22,000 in August; Unemployment at 4.3%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment rose by 22,000 in August, showing little change since April.

The unemployment rate held at 4.3%, with 7.4 million people unemployed. Both measures have changed little over the year.

Growth was led by the following sectors:

• Health care added 31,000 jobs, below the 12-month average of 42,000.
• Social assistance continued to trend upward, adding 16,000 jobs, largely in individual and family services.

Employment showed little change over the month in most other major industries, including construction; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services.

Job losses were concentrated in:

• Federal government employment, which fell by 15,000. Since peaking in January, federal payrolls have declined by 97,000.
• Mining, quarrying, and oil and gas extraction, down 6,000 after little change over the past year.
• Wholesale trade, which lost 12,000 jobs and has fallen by 32,000 since May.
• Manufacturing, which shed 12,000 jobs in August and is down 78,000 year-to-date.

The BLS noted that employees on paid leave or receiving severance pay are still counted as employed in the establishment survey.

Monthly Revisions

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 27,000, from a gain of 14,000 to a loss of 13,000, and the change for July was revised up by 6,000, from 73,000 to 79,000. With these revisions, employment in June and July combined is 21,000 lower than previously reported.