Published: Fri, September 07, 2018
Economy | By

US adds a strong 201K jobs; unemployment stays at 3.9 pct

US adds a strong 201K jobs; unemployment stays at 3.9 pct

The economy lost 51,600 jobs last month in a decrease that drove up the unemployment rate and essentially wiped out a big gain in July, Statistics Canada said Friday. Economists have been puzzled by wage growth that has appeared stuck between 2 and 2.5 percent, despite an unemployment rate near an 18-year low.

U.S. job growth accelerated in August, with wages notching their largest annual increase in nine years, strengthening views the economy was so far weathering the Trump administration's escalating trade war with China.

Another month for 2018 is in the rearview mirror, and another jobs report has revealed that the United States labor market continues to chug along at a steady pace.

Annual wage growth hit a nine-year high in the U.S. last month as the economy created more jobs than expected.

This is the 95th straight month that USA employers have added jobs, according to Dow Jones.

The black unemployment rate, which President Donald Trump has touted in recent months, declined to 6.3% in August though remains above the more than 40-year low of 5.9% hit back in May.

- USA wage growth increased to+2.9% y/y, ending the recent streak of negative real wage growth.

This developing report will be updated.

Nonfarm payrolls surged by 201,000 jobs last month, boosted by hiring at construction sites, wholesalers and professional and business services, the Labor Department said. "However, given that jobs added are still above 200,000, showing many more Americans want to work, and wages have started to increase about the 2.7% level, we could be entering that sweet spot for workers that's typical at an expansion's peak".

The US Federal Reserve, which has already raised rates twice this year, is due to meet on 25-26 September.

Analysts say the Trump administration's $1.5 trillion tax cut package and increased government spending were shielding the economy from the trade tensions.

The US economy grew at a 4.2% annualised rate in the second quarter, nearly double the 2.2% pace set in the three months from January to March.

The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, fell two-tenths of a percentage point to 62.7 percent last month, putting a wrinkle on an otherwise upbeat employment report.

Private sector payrolls rose by 204,000. That was the first drop since July 2017 and followed an increase of 18,000 in July.

USA construction companies hired 23,000 more workers last month.

Government employment fell 3,000 in August.

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