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Friday, September 02, 2022

August Employment Report: 315 thousand Jobs, 3.7% Unemployment Rate

by Calculated Risk on 9/02/2022 08:43:00 AM

From the BLS:

Total nonfarm payroll employment increased by 315,000 in August, and the unemployment rate rose to 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in professional and business services, health care, and retail trade.
The change in total nonfarm payroll employment for June was revised down by 105,000, from +398,000 to +293,000, and the change for July was revised down by 2,000, from +528,000 to +526,000. With these revisions, employment in June and July combined is 107,000 lower than previously reported.
emphasis added
Employment Recessions, Scariest Job ChartClick on graph for larger image.

The first graph shows the job losses from the start of the employment recession, in percentage terms.

The current employment recession was by far the worst recession since WWII in percentage terms.

However, 30 months after the onset of the current employment recession, all of the jobs have returned. I'll post this graph through the January 2023 report (includes the annual revision).

Year-over-year change employment The second graph shows the year-over-year change in total non-farm employment since 1968.

In August, the year-over-year change was 5.84 million jobs.  Employment was up significantly year-over-year.

Total payrolls increased by 315 thousand in August.  Private payrolls increased by 308 thousand, and public payrolls increased 7 thousand.

Payrolls for June and July were revised down 107 thousand, combined.

The third graph shows the employment population ratio and the participation rate.

Employment Pop Ratio and participation rate The Labor Force Participation Rate increased to 62.4% in August, from 62.1% in July. This is the percentage of the working age population in the labor force.

The Employment-Population ratio increased to 60.1% from 60.0% (blue line).

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

unemployment rateThe fourth graph shows the unemployment rate.

The unemployment rate was increased in August to 3.7% from 3.5% in July.

This was above consensus expectations; however, June and July payrolls were revised down by 107,000 combined.  

I'll have more later ...