Employers Add Just 142,000 Jobs in Disappointing Monthly Report
The gain was far less than economists predicted, but the unemployment rate did dip to 6.1 percent.
U.S. employers added 142,000 jobs in August, significantly below economist projections of a gain of more than 200,000 jobs, according to the Bureau of Labor Statistics.
The unemployment rate fared better, ticking down to 6.1 percent from 6.2 percent, which was in line with industry expectations.
The mediocre payroll number broke a six-month streak of monthly gains over 200,000 jobs that had offered the sense that the nation's job market was finally strengthening after years of tepid growth. Economists surveyed by Bloomberg News had predicted an August gain of 234,000 jobs.
The instant reaction on Twitter was surprise and disappointment.
Oof— Lizzie O'Leary (@lizzieohreally) September 5, 2014
And on CNBC, economist Mark Zandi voiced disbelief. "I don't believe it. I don't believe this data," Zandi said. "The underlying trend has not changed."
Zandi predicted the numbers would be revised in subsequent months.
Overall: This is a deeply mediocre report, inconsistent with other recent evidence on the economy. Let's hope it's an aberration.— Neil Irwin (@Neil_Irwin) September 5, 2014
There were a few silver linings, however. The unemployment rate fell even as the labor force participation rate changed little, and average hourly earnings rose in August by six cents and were up 2.1 percent from a year ago.
Some good news: Long-term jobless drops below below 3M, fall to 31.2% of unemployed vs. 32.9% in July— James Pethokoukis (@JimPethokoukis) September 5, 2014