Payrolls increase by nearly 1.4 million as the unemployment rate tumbles

Nonfarm payrolls increased by 1.37 million in August and the unemployment rate tumbled to 8.4% as the U.S. economy continued to climb its way out of the pandemic downturn.

The unemployment rate was by far the lowest since the coronavirus shutdown in March, according to Labor Department figures released Friday. An alternative measure that includes discouraged workers and those holding part-time jobs for economic reasons also fell, down to 14.2% from 16.5% in July and 22.8% at the peak in April.

Economists surveyed by Dow Jones had been expecting growth of 1.32 million and the jobless rate to decline to 9.8% from 10.2% in July.

“It’s another great day for American jobs and American workers,” Vice President Mike Pence told CNBC. Pence added that the job growth and the single-digit unemployment rate is “real evidence that the American comeback is underway.”

Markets initially reacted positively to the news, but stocks

Read More

US economy adds 1.371 million payrolls in August, unemployment rate dips to 8.4%

The US economy added back a greater than expected number of payrolls in August and the unemployment rate improved by a larger than anticipated margin, as employers continued to bring back workers as virus-related business disruptions abated. Still, the pace of payroll gains slowed relative to recent months.

Here were the main metrics from the Department of Labor’s August jobs report released Friday morning, compared to consensus estimates compiled by Bloomberg:

  • Change in non-farm payrolls: +1.371 million vs. +1.350 million expected, vs. +1.734 million in July

  • Unemployment rate: 8.4% vs. 9.8% expected, vs. 10.2% in July

  • Average hourly earnings, month over month: 0.4% vs. 0.0% expected, +0.1% in July

  • Average hourly earnings, year over year: 4.7% vs. 4.5% expected, 4.7% in July

  • Labor force participation rate: 61.7% vs. 61.8% expected, 61.4% in July

Even with another print above 1 million, the number of non-farm payrolls added in August has not

Read More

US private payrolls rose 428,000 in August, ADP report says

US companies continued to add jobs back in August, but at a slower pace than economists expected as the recovery from the coronavirus pandemic recession slows. 

US private payrolls rose 428,000 in August, according to the ADP monthly employment reported released Wednesday. That fell short of the median economist estimate that US companies would add back 1 million jobs during the month, according to Bloomberg data. 

“The August job postings demonstrate a slow recovery,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a press release. “Job gains are minimal, and businesses across all sizes and sectors have yet to come close to their pre-COVID-19 employment levels.”

Read more: GOLDMAN SACHS: Women portfolio managers are outperforming their male counterparts so far in 2020. These are the 25 stocks they own the most compared to men.

The bulk of the jobs added back during the month were

Read More