Investor's Crypto DailyInvestor's Crypto Daily
Font ResizerAa
  • Home
  • Headlines
    • Financial Market News
    • Cryptocurrency News
    • Press Releases
    • My Bookmarks
  • Spotlight Stories
  • Crypto Stock Plays
    • Crypto ETFs, Trusts & Investment Funds
    • Crypto Adjacent Stocks
    • Crypto Futures (Settled in USD)
  • Step Into Crypto
    • Common Crypto Terms
    • Crypto Rules & Regulations
  • Economy
    • Economic News
    • Economic Calendar
  • Join Us
Reading: US payrolls grew by 142,000 in august, missing estimates while unemployment fell to 4.2%
Share
Font ResizerAa
Investor's Crypto DailyInvestor's Crypto Daily
  • Home
  • Headlines
  • Spotlight Stories
  • Crypto Stock Plays
  • Step Into Crypto
  • Economy
  • Join Us
Search
  • Home
  • Headlines
    • Financial Market News
    • Cryptocurrency News
    • Press Releases
    • My Bookmarks
  • Spotlight Stories
  • Crypto Stock Plays
    • Crypto ETFs, Trusts & Investment Funds
    • Crypto Adjacent Stocks
    • Crypto Futures (Settled in USD)
  • Step Into Crypto
    • Common Crypto Terms
    • Crypto Rules & Regulations
  • Economy
    • Economic News
    • Economic Calendar
  • Join Us
Follow US
  • Advertise
© 2024 Investor's Crypto Daily. All Rights Reserved.
Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > US payrolls grew by 142,000 in august, missing estimates while unemployment fell to 4.2%
Economic News

US payrolls grew by 142,000 in august, missing estimates while unemployment fell to 4.2%

Last updated: September 6, 2024 2:43 pm
By Ronald Dupree 5 Min Read
Share
SHARE

In August, the US job market experienced a slower growth than anticipated.

Contents
US Construction Leads, Manufacturing LagsWage growth beats expectationsStocks and Treasury yields are stableEconomic data is key to Fed’s decisions

Dow Jones had predicted a 161,000 increase in nonfarm payrolls, but the actual number was 142,000. This reflects a contraction of labour demand.

The Federal Reserve may lower interest rates in the coming months due to this slowdown.

As expected, the unemployment rate dropped to 4.2% while the rate of labour force participation remained at 62.7%.

Source: CNBC

Although August’s numbers are higher than the 89,000 revised in July, they still fall below the consensus estimate of 161,000.

Bureau of Labor Statistics data (BLS), released by the Bureau on Friday, highlights a continued deceleration of job creation in an uncertain economic environment.

The Federal Reserve may be influenced by the slowdown in the economy to make decisions about monetary policy.

The unemployment rate decreased slightly to 4.2% but the labor force increased by 120,000 people, maintaining the steady rate of participation at 62.7%.

The underemployment rate, including discouraged workers, and those who have part-time work for economic reasons rose from 7.9% to 8.9%.

The level of unemployment is at its highest since October 20, signaling hidden pressures on the labor market.

Source: CNBC

Bureau of Labor Statistics has revised downward the job growth numbers for the two preceding months.

The July numbers have been reduced by 25,000, which brings the total down to 89,000. June’s revision was more substantial, with a reduction of 61,000 to 118,000.

This adjustment suggests that the US labour market is weaker than originally reported. It also adds to the concerns over the US economic strength.

US Construction Leads, Manufacturing Lags

August saw a wide range of performance across a number of sectors.

The construction industry was a strong performer, adding over 34,000 new jobs. This shows resilience in the face of economic uncertainty.

Social assistance and healthcare both grew, with 31,000 new jobs added in the sector of health care.

Manufacturing suffered a blow, with 24,000 lost jobs in the last month.

Mixed sector performances indicate that some sectors are still strong while others feel the pressure of economic headwinds.

Wage growth beats expectations

Wages showed a stronger-than-expected increase in August.

The average hourly wage grew 0.4% from month to month and by 3.8% annually, exceeding the expected 0.3% and 3,7%.

The Federal Reserve may be tempted to cut rates in order to boost economic activity, but this robust wage growth will complicate its task.

This slight rise in the number of hours per week to 34.4 underscores further inflationary pressure.

Stocks and Treasury yields are stable

Market reaction to August’s employment report has been relatively muted.

The yields on Treasury bonds and stock futures both fell.

Investors may have already priced in the possibility that the Federal Reserve will cut rates.

The central bank will have to balance a number of factors in the upcoming meeting, as the labour market is showing signs of cooling while wage growth continues.

Economic data is key to Fed’s decisions

This month’s jobs report paints a picture that is not entirely positive.

Even though job growth has slowed, wages and unemployment rates have remained stable.

The Federal Reserve may be tempted to cut rates in order to boost economic growth, but these mixed signals could complicate their policy.

Stronger-than-expected wage growth could prompt a more cautious approach.

In the weeks ahead, as the markets wait for the Fed to make its next move in monetary policy, the economic indicators will be crucial in determining monetary policies.

The post US payrolls fall by 142,000 jobs in August and miss the estimates, as unemployment drops to 4.2% could be updated as new information unfolds

This site is for entertainment only. Click here to read more

You May Also Like:

  • Interview: Ed Yardeni says US Fed cut interest rates…
  • Interview: Poddar, Motilal Oswal's Poddar suggests…
  • NFTs can boom again

You Might Also Like

On election day, the crypto prediction markets show Trump ahead of Harris

What could a war between Israel and Iran mean for the Middle East’s economy?

Carvana shares are falling, despite promises of a’significant’ growth in 2025

US Fed rate reduction ahead of elections marks rare central bank move

Interview: Poddar, Motilal Oswal’s Poddar suggests that September & Octember are good months to go long.

Share This Article
Facebook Twitter Email Copy Link Print
Previous Article Jim Cramer is bullish about AVGO after the Broadcom stock drops.
Next Article Short Gold: Consolidation below the supply zone signals a potential breakdown towards key support levels amid mixed results
Leave a comment

Click here to cancel reply.

Please Login to Comment.

Stay Connected

TwitterFollow
- Partnered Content -
Ad image

Latest News

Is Bitcoin Earning Real Yield Now? Solv Protocol’s New RWA Token Says Yes
Cryptocurrency News
Billion-Dollar Bank Warns 7,537 Customers After Data Breach Triggers Unauthorized Account Access
Cryptocurrency News
Why did Cox Communications finally agree to the buyout, after many years of opposition?
Financial Market News
Eli Lilly beats Novo to the top of obesity drug race as more players join in
Economic News
//

We support the traditional finance investor’s journey into the cryptocurrency space, using education and traditional terms. Get involved in crypto directly or through adjacent stocks and funds. Time to get off the sidelines.

– Sponsored Spotlight –

Get Around

  • Home
  • Headline News
  • Spotlight Stories
    New
  • Economy
  • Step Into Crypto

Get Involved

  • Advertise With Us
  • Join Us
    Hot
  • My Bookmarks
  • Privacy Policy & Legal Disclaimer
  • Contact US
2024 Investor's Crypto Daily | InvestorsCryptoDaily.com | Privacy
Welcome Back!

Sign in to your account

Lost your password?