Data released by the U.S. Bureau of Labor Statistics this month paints a picture of a U.S. economy that is mostly moving sideways.
According to the data, very few jobs were added in the month of August. Total nonfarm employment increased by only 22,000 jobs for the month. According to the Bureau, this represents “little change since April.”
At the same time, the unemployment rate has ticked up slightly. The Bureau reports that the unemployment rate for August reached 4.3%. This is an increase of one-tenth of a percent from July (4.2%) and two-tenths of a percent from June (4.1%). The number of unemployed is also trending upward. It reached 7,384,000 in August, up from 7,236,000 in July and 7,015,000 in June.
The figures vary by industry, although most show similar patterns. The construction industry lost 7,000 jobs in August, dropping from 8,302,000 to 8,295,000 jobs. Specialty trade contractors experienced the biggest drop of 5,400 jobs. At the other end of the spectrum, residential building construction showed the smallest decrease, losing only 900 jobs for the month.
Other industries fared even worse. Manufacturing lost 12,000 jobs in the month of August. Wholesale trade industries lost 11,700 jobs, and professional and business services lost 17,000 jobs.
All news was not negative. The loss in jobs in some industries was offset by gains in others. For example, private service providers added 63,000 jobs in August. Retail trade added 10,500 jobs, and healthcare services industries added 30,600 jobs.
The figures are also shadowed by news and controversy surrounding regular revisions and updates to the data. On that note, the Bureau reports that the change in total nonfarm payroll employment for June was revised down by 27,000, from a positive 14,000 to a negative 13,000, and the change for July was revised up by 6,000, from a positive 73,000 to a positive 79,000. With these revisions, employment in June and July combined is 21,000 lower than previously reported. The Bureau notes that monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.
About The Author
LAEZMAN is a Los Angeles-based freelance writer who has been covering renewable power for more than 10 years. He may be reached at [email protected].