August jobs numbers ‘sluggish’ with gains concentrated in few areas

Total nonfarm payroll employment changed little in August (+22,000) and has shown little change since April, the U.S. Bureau of Labor Statistics reported Friday. The unemployment rate, at 4.3%, also changed little in August. Job gains in health care were partially offset by losses in federal government and in mining, quarrying, and oil and gas extraction.

“August's sluggish hiring numbers, combined with downward revisions to prior months, showed the economy added only about 30,000 jobs per month during the summer, with gains concentrated in just a few sectors,” said America's Credit Unions Senior Economist Dawit Kebede. “Low hiring and rising unemployment imply a decline in consumer spending and economic growth, which generally leads to reduced price pressures. With employment showing continued weakness and rates still in restrictive territory, the Federal Reserve is positioned to cut rates this month and likely deliver additional cuts before year-end to move policy toward neutral levels.

“With economic concerns, credit unions will be there to support members facing financial challenges and continue supporting their communities through affordable lending and strong financial management,” he added.