WASHINGTON — The U.S. August employment report was on the strong side--though it once again underperformed expectations for job gains.
Nonfarm payrolls posted a 173,000 gain and up-revisions to prior months totaled a 44,000 increase.
Note that August jobs tend to get revised higher next month as more responses are entered. A Bureau of Labor Statistics economist denied that the response rate alone correlates with the revisions and said changes have been made to improve the data, though there always will be late reporters.
The trailing 12-month average for jobs is up 247,000, so August represents a slight slowing.
The civilian unemployment rate edged lower to 5.1%, with a steady labor force. Labor force participation was unchanged at 62.6%.
Wages appear strong. Average hourly earnings posted an 8-cent gain or 0.3% for a 2.2% increase over the year.
Hours also jumped, implying better production and income in upcoming reports.
Jobs included: manufacturing off 17,000, mining down 9,300 (with most of the loss in support activities), construction up 3,000, retail 7,300 higher, finance up 19,000, temporary help 10,700 better, healthcare up 40,500, and leisure 33,000 higher (of which 26,100 were restaurant jobs).
Government posted a 33,000 gain, including local education at a 22,900 rise. This meant that private jobs posted a mere 140,000 increase. Given the fact that the timing of the start of school impacts this number we would not read too much into this composition.
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