US hiring picked up in August while wage growth slowed, underscoring a gradually moderating labour market.
Nonfarm payrolls rose 187 000 after the prior two months were revised significantly lower, a Bureau of Labour Statistics report showed Friday. The unemployment rate rose to 3.8%, partly reflecting a pickup in participation, and wage growth slowed.
The payrolls figure also includes a combined drop of 54 000 in the film and trucking industries, largely reflecting an entertainment strike and the shutdown of a major carrier, the report showed.
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| Metric | Actual | Median Estimate |
|---|---|---|
| Change in payrolls (MoM) | +187k | +170k |
| Unemployment rate | 3.8% | 3.5% |
| Average hourly earnings (MoM) | +0.2% | +0.3% |
The labour market has been the stalwart of the US economy this year, supporting renewed momentum that may help the nation avert recession — at least in the near term. While job openings and wage gains have both retreated in recent months, hiring and incomes are still firm enough to bolster consumer spending.
That said, Friday’s report offered fresh signs that hiring hasn’t been as strong as previously reported. June and July payroll gains were revised lower by 110 000, following data last week that estimated US job growth was probably less robust in the year through March.
Treasury yields slid, S&P 500 index futures extended gains and the dollar weakened after the report. Traders continue to see the Federal Reserve cutting interest rates in 2024, lifting the odds that such a move comes as soon as in March.
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