(RTTNews) - Employment in the U.S. increased roughly in line with economist estimates in the month of August, according to a closely watched report released by the Labor Department on Friday.
The report showed non-farm payroll employment rose by 315,000 jobs in August after surging by a revised 526,000 jobs in July.
Economists had expected employment to increase by about 300,000 jobs compared to the jump of 528,000 jobs originally reported for the previous month.
The increase in employment reflected notable job gains in the professional and business services, healthcare, and retail sectors.
Meanwhile, the Labor Department said the unemployment rate edged up to 3.7 percent in August from 3.5 percent in July. Economists had expected the unemployment rate to remain unchanged.
The unexpected uptick by the unemployment rate came as the labor force increased by 786,000 persons, more than outpacing the 442,000-person growth in the household measure of employment.
"Nevertheless, the strength of the latter still closed some of the gap that had opened up between the household and payroll measures of employment," said Michael Pearce, Senior U.S. Economist at Capital Economics.
He added, "The rebound in the labor force takes it above pre-pandemic levels, though the participation rate is still lagging, particularly for older workers."
The report also showed average hourly earnings rose by $0.10 or 0.3 percent to $32.36 in August. The annual rate of wage growth remained unchanged at 5.2 percent.
"In all, the data suggest labor market conditions are beginning to slow more markedly, which we expect will contribute to weaker economic growth over the coming years," Pearce said.
He continued, "With easing labor market conditions also contributing to weaker wage pressures, that will help to push back on the Fed's recent hawkishness."
