The U.S. Labor
Department reported on Friday that nonfarm payrolls increased by 142,000 in August
after a downwardly revised 89,000 increase (from 114,000) in July. The July
reading was in line with average job growth in recent months but below the
average monthly gain of 202,000 over the prior 12 months.
According to
the report, the largest jobs advances occurred in construction (+34,000) and health care (+31,000).
The
unemployment rate slipped to 4.2 per cent from an unrevised 4.3 per
cent in the prior month.
Economists had forecast
the nonfarm payrolls to rise by 160,000 and the jobless rate to drop to 4.2 per
cent.
The labour force
participation rate held steady at 62.7 per cent in August, while hourly earnings for private-sector workers climbed
by 0.4 per cent m-o-m (or $0.14) to $35.21, following an unrevised 0.2 per cent m-o-m gain in July. Economists had predicted the average hourly earnings to rise
by 0.3 per cent m-o-m in August. Over the year, the average hourly earnings surged
3.8 per cent in August, following
an unrevised 3.6 per cent soar in the previous month. Economists had expected the annual wage
to grow by 3.7
per cent in August.
The
average workweek increased
0.1 hour to 34.3 hours last month, matching economists' expectations.