Durrant Pate/Contributor

The United States’ unemployment rate increased by 0.3 per cent to 3.8 per cent last month, given that the number of unemployed individuals rose by 514,000 to 6.4 million.

The Bureau of Labor Statistics (BLS), which has just published the latest employment and unemployment numbers, is reporting an 187,000 increase in total non-farm payroll employment alongside the slight rise in the unemployment rate.

The data numbers come from two monthly surveys; the household survey, which tracks labor force status and unemployment by demographic characteristics, and the establishment survey, measuring non-farm employment and working hours. The survey also captures earnings by industry, providing valuable insights into the labour market’s current state.

Key sectors showing employment growth included health care, leisure and hospitality, social assistance, and construction, while the transportation and warehousing sector saw a decline in employment.

Household Survey Data

Among specific demographic groups; adult men, Whites, and Asians saw their unemployment rates rise, while rates for adult women, teenagers, Blacks, and Hispanics remained relatively stable. The number of job losers and those completing temporary jobs increased by 294,000, offsetting a decrease in July, while new entrants to the job market rose to 597,000.

The number of individuals unemployed for less than five weeks and the long-term unemployed both increased slightly. The BLS reports that labour force participation rate rose by 0.2 per cent to 62.8 per cent while the employment-population ratio remained unchanged at 60.4 per cent.

Additionally, the number of people employed part-time for economic reasons remained steady at 4.2 million. Those not in the labor force but desiring a job numbered 5.4 million, while 1.5 million were marginally attached to the labor force, and 386,000 were classified as discouraged workers.

Establishment survey data

In August, total non-farm payroll employment in the America increased by 187,000 jobs, which was lower than the average monthly gain of 271,000 over the past year. Notable sectors that saw job growth included health care (+71,000), leisure and hospitality (+40,000), social assistance (+26,000), and construction (+22,000).

However, employment in transportation and warehousing declined by 34,000, driven by a significant drop in truck transportation employment. The professional and business services sector remained relatively stable, with a gain of 19,000 jobs, although temporary help services continued to trend down.

Information employment decreased by 15,000 due to strike activity in the motion picture and sound recording industries. Across various major industries, there was little change in employment, including mining, manufacturing, wholesale and retail trade, financial activities, other services, and government.

Additionally, the BLS found the “average hourly earnings for all private non-farm employees increased by 0.2 per cent in August, reaching US$33.82, reflecting a 4.3 per cent rise over the past 12 months. The average work week for all employees edged up slightly by 0.1 hour to 34.4 hours with manufacturing maintaining a 40.1-hour work week.

It is worth noting that employment data for June and July were revised down, resulting in a combined 110,000 jobs lower than previously reported due to additional reports from businesses and government agencies and recalculations of seasonal factors.