Published: Mon, September 10, 2018
Markets | By Otis Pena

August jobs growth tops expectations, unemployment holds near 18-year low

August jobs growth tops expectations, unemployment holds near 18-year low

Taken as a whole, the data points to a job market that remains resilient even after almost a decade of economic expansion and even with the threat of tariffs and counter-tariffs on imports and exports looming over many United States employers that rely on global trade.

The US economy created 201,000 new jobs in August, according to a report released by the Labor Department before markets opened on Friday.

The details across industries showed manufacturing payrolls fell by 3 000 in August, breaking an nearly yearlong streak of solid gains and missing the median estimate for a 23 000 increase.

The report also said the annual rate of average hourly employee earnings accelerated to 2.9 percent in August from 2.7 percent in July.

USA employers added more jobs than forecast in August, and wages increased at their fastest pace since the Great Recession, a government report showed on Friday.

The unemployment rate remained at 3.9 percent, near an 18-year low.

In this June 20, 2018 photo, a worker wields a hammer at a construction site in Boston.

- USD Unemployment Rate (AUG): 3.9% versus 3.8% expected, unch.

Remnants of 'Gordon' set to surge into the tri
Rainfall rates should stay manageable in most spots, but travelers should plan ahead for some delays at the start of the week. While the heaviest rain will end before Monday evening, it will likely take several hours for the larger basins to crest.

The expected gain for August would be a solid one, though below the average increase over the previous six months of 220,000 jobs. "While the magnitude of any potential downward bias to August data can vary depending on the way it is measured, we think that it is probably modest (likely around 10-20k)", Silver said. Private employment rose by 204,000, compared with a median estimate of 194,000.

"The U.S. economy is barreling full steam ahead", economist Leslie Preston of TD economics wrote in a note to clients.

Investors will look to see if tech stocks can get a bounce after three-straight losing days for the Nasdaq as emerging markets remain under pressure.

The unemployment for African Americans dropped from 6.6 percent in July down to 6.3 percent in August.

That lowered the participation rate, or share of working-age people in the labor force, to 62.7% from 62.9% the prior month.

Manufacturers lost 3,000 jobs after a string of healthy gains in a sign the trade skirmishes may have curbed hiring.

Construction companies hired 23,000 more workers last month after increasing payrolls by 18,000 jobs in July.

Industries such as health care, business services and wholesale trade saw significant job gains over the past month. That raised the annual increase in wages to 2.9 per cent in August, the largest increase since June 2009, from 2.7 per cent in July.

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