The labor market ended the summer with a splat. Jobs growth in August came in well-below expectations, breaking a six-month streak of especially robust gains. The unemployment rate was essentially unchanged.
Non-farm payrolls expanded by 142,000 last month, the Department of Labor said Friday in the August jobs report. Economists were looking for payroll growth of 225,000. Job growth failed to top 200,000 a month for a seventh-straight month — a feat last accomplished during the tech boom of the last 1990s.
The unemployment rate, which is derived from a separate survey, ticked down to 6.1% from 6.2%, in line with economists’ forecast.
The August jobs report was something of a shocker given signs of a strengthening labor market over the last several months.
As always, whether folks actually landed jobs greatly depended on the industry they were targeting. Here’s a look into the August jobs report:
August Jobs Report: Industry Highlights
Drilling down into the Bureau of Labor Statistics’ August Employment Situation Report showed areas of strength in professional and business services, and in healthcare.
The best industry for job seekers in August was in professional and business services, which added 47,000 jobs. The top area for hiring within the industry was management of companies and enterprises. Other areas of strength included administrative and support services, architectural and engineering services and in management and technical consulting services.
Healthcare continued to be a promising industry for seekers in August, adding 34,000 in August. Areas of strength included doctors’ offices and hospitals. Additionally, social assistance employment continued to trend up last month, the Labor Department said.
Bars and restaurants hired more workers once again last month. Employment in food services and drinking places rose by 21,500 in August.
Construction employment also improved last month, as payrolls expanded by 20,000. Areas of strength included specialty trade contractors and construction of buildings.
On the other side of the August jobs report, there were pockets of labor-market weakness in several major industry subsectors.
Within the manufacturing sector, motor vehicles and parts lost 4,600 jobs in August, after adding 13,000 jobs in July. Employment in electronic instruments fell by 1,900.
Retail trade employment saw payrolls contract by 8,400, led by food and beverage stores, which shed 17,100 jobs, hurt by employment disruptions at a grocery store chain in New England. Clothing and clothing accessories stores shed 6,200 positions.
Within transportation and warehousing, payrolls in air transportation contracted by 1,900. Truck and rail transportation also saw payrolls shrink, albeit by fewer than 1,000 jobs, respectively.
