In spite of an addition of 142,000 jobs in August, payroll growth slowed considerably after six months of strong growth. This has been reported by the Labor Department on Friday. Unemployment rate based on multiple survey shows a fall of .1% from 6.2 to 6.1 in July.
According to Economists’ median forecast in Action Economics’ survey, 220,000 jobs were added last month. The average monthly job growth was 215,000 this year in comparison to 194,000 in 2013. A harsh winter did not much affect the economy in the first quarter.
Till August, the employers had added 200,000 plus jobs for six months in a row. Business added 134,000 jobs; a majority of jobs were created in the professional, business services and healthcare segment. Another 8000 jobs were added in the Federal, state and local governments. The job gains for June and July have been revised by 28000, June’s figures was revised from 267,000 from 298,000 and July to 212,000 from 209,000.
Mike Schenk, chief economist of the Credit Union National Association said, “Nothing alters our fundamental view that the labor market is broadly improving. The August figure is at odds with some of the other (employment) data we’ve been looking at.”
The August tally was disheartening but chances are that it could be revised later after future month’s figures are available. In past years also the figures of August was below expectations but were later revised. In 2011, the Labor Department figures indicated no job gains in August but it was later revised to show a gain of 57,000. After two months the figure was again revised and it stood at 104,000 gains. In 2013 also the figures of August was revised from 169,000 to 193,000 and again later to 238,000. Many financial experts have dismissed the last month’s slowdown as a blip.