US Employment Growth Accelerated in August
Growth of employment rate in the US accelerated in August. The US Labor Department reported, that nonfarm payrolls (NFP) rose by 201.000 in August, higher than the consensus estimate for the creation of 191.000 jobs and the 163.000 positions that the ADP report indicated on Thursday.
The previous month’s reading of NFP was revised to 147.000 from the 157.000 registered initially. Government payrolls decreased by 3.000 last month, compared to the prior destruction of 6,000 public positions.
Average hourly earnings increased by 0.4% month-on-month in August, above expectations for a 0.3% growth. On an annualized basis, wage inflation grew 2.9% in August. Economists had projected the indicator to remain unchanged at 2.7%.
Meanwhile, unemployment rate unexpectedly held steady at 3.9%. Analysts had expected the jobless rate to decrease to 3.8%. The U-6 unemployment rate, that includes those workers who are working part-time for purely economic reasons, fell to 7.4% in August from the prior 7.5%.