U.S. Job Growth Falls Short in August as Manufacturing Jobs Plummet

The U.S. added only 142,000 jobs in August, falling short of expectations, with significant downward revisions in prior months and a steep decline in manufacturing jobs.

By yourNEWS Media Newsroom

U.S. job growth in August was significantly weaker than anticipated, with only 142,000 jobs added, according to the Labor Department’s report on Friday. Economists had forecast an increase of 160,000 jobs for the month, making the actual figure a notable shortfall. The report also revealed downward revisions for job growth in previous months, suggesting that the labor market’s underlying strength is weaker than it appears.

July’s job gains were revised down from an initial estimate of 114,000 to 89,000, while June’s figure was revised down by 60,000 to 118,000. These adjustments reflect a more subdued employment landscape than initially reported.

The unemployment rate saw a slight dip in August, falling to 4.2 percent from 4.3 percent in July. The labor force participation rate held steady at 62.7 percent, a figure that has remained largely unchanged over the past year, indicating little improvement in labor force engagement.

Average hourly earnings for all employees on private nonfarm payrolls increased by 14 cents, or 0.4 percent, reaching $35.21. Over the past 12 months, wages have risen by 3.8 percent, a stronger-than-expected gain, providing a silver lining in an otherwise underwhelming labor report.

Private sector payrolls grew by 118,000 jobs in August, missing the forecast of 136,000 jobs. In addition, July’s private sector job estimate was revised down to 74,000 from the previous figure of 97,000, further emphasizing the cooling job market.

The manufacturing sector, in particular, experienced a sharp decline, shedding 24,000 jobs—six times higher than expected. This follows an upward revision for July, which now shows a gain of 6,000 manufacturing jobs compared to the earlier estimate of just 1,000.

The latest data paints a picture of a labor market that is losing momentum, with weaker job growth across various sectors and significant job losses in manufacturing. As policymakers and economists evaluate the situation, questions about the overall strength of the economy and the potential need for further interventions are likely to intensify.