The U.S. Added 1.4 Million Jobs In August, But The Recovery Is Slowing Down

TOPLINE

 The U.S. added 1.4 million jobs in August, the Labor Department said Friday—the new data shows that while the labor market is making modest gains, the pace of recovery has slowed significantly thanks to the expiration of federal stimulus benefits.

KEY FACTS

Friday’s numbers were in line with the 1.4 million new jobs economists were expecting. 

The economy added 1.8 million jobs in July, and 4.8 million jobs in June, and the unemployment rate fell from 10.2% to 8.4% after skyrocketing to 14.7% in April. 

During the Great Recession, the unemployment rate peaked at 10.6% in January 2010. 

Despite Augusts’ gains, the economy is still down 11 million jobs from February, before the coronavirus shutdowns began to take a

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Friday’s Jobs Report Is Likely to Affirm Slowing Recovery. Here’s What to Watch.

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Rehiring is likely to have continued in August, though at the slowest pace since the job market began to spring back from mass layoffs in March and April.

High-frequency labor market gauges over the past month suggest that while the economic recovery is ongoing, it is losing some momentum. Job postings, employment across small businesses, and temporary employment all slowed between the July and August payroll reference periods (the Labor Department surveys during the week of the month that contains the 12th). On the other side of the jobs equation, meanwhile, layoffs remain at historic levels.

Given the volatile nature of the U.S. economy’s snapback from March and April levels, it’s been harder than ever for economists to forecast monthly economic readings. That’s especially true for nonfarm payrolls, where issues such as misclassifications of laid-off workers have made the data less predictable.

In other words,

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