Friday, September 05, 2014

August Employment Report: 142,000 Jobs, 6.1% Unemployment Rate

by Bill McBride on 9/05/2014 08:30:00 AM

From the BLS:

Total nonfarm payroll employment increased by 142,000 in August, and the unemployment rate was little changed at 6.1 percent, the U.S. Bureau of Labor Statistics reported today.
...
The change in total nonfarm payroll employment for June was revised from +298,000 to +267,000, and the change for July was revised from +209,000 to +212,000. With these revisions, employment gains in June and July combined were 28,000 less than previously reported.
Payroll jobs added per monthClick on graph for larger image.

The first graph shows the monthly change in payroll jobs, ex-Census (meaning the impact of the decennial Census temporary hires and layoffs is removed to show the underlying payroll changes).

Employment is now up 2.48 million year-over-year.

Total employment is now 753 thousand above the pre-recession peak.

unemployment rateThe second graph shows the employment population ratio and the participation rate.

The Labor Force Participation Rate decreased in August to 62.8% from 62.9% in July. This is the percentage of the working age population in the labor force.   A large portion of the recent decline in the participation rate is due to demographics.

The participation rate has mostly moved sideways all year.

The Employment-Population ratio was unchanged at 59.0% (black line).

I'll post the 25 to 54 age group employment-population ratio graph later.

Employment Pop Ratio, participation and unemployment ratesThe third graph shows the unemployment rate.

The unemployment rate decreased in August to 6.1%.

This was below expectations, and the revisions to prior months were negative 28,000.

I'll have much more later ...