Jobs

US Jobs data: Payroll gains miss expectations at a disappointing 142,000

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3 months ago

September 6, 2024

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US Jobs data: Payroll gains miss expectations at a disappointing 142,000

Sep 06, 2024 07:26 PM IST

Although the number of jobs added by US employers is “not a disaster,” it’s still below expectations.

August payrolls expanded by 142,000, weaker than expected. Although the number was up from 89,000 in July, it was below the 161,000 consensus forecast, according to a Friday report from the Labour Department’s Bureau of Labour Statistics. Similarly, the employment rate ticked down from 4.3% to 4.2%.

A pedestrian walks past a “Now Hiring” sign posted on a business storefront in San Gabriel, California on August 21, 2024. US job gains for the past twelve months ending in March showed there were 818,000 fewer jobs than previously reported in the largest downward revision since 2009.(AFP)

“I don’t like this a whole lot. It’s not disaster, but it’s below expectations on the headline, and what really bothers me is the revisions,” said Dan North, senior economist for North America at Allianz Trade, per CNBC’s reporting. “This is certainly going the wrong way.”

According to Bloomberg’s previous surveys, economists estimated that US jobs grew by 163,000 last month. Sharp payroll gains revisions for the past two months went from 179,000 to 118,000 in June and from 114,000 to 89,000 in July. All in all, the whole picture suggests a weaker narrative of the labour market in early summer.

USA Today reported that economists are already implying these downward updates may lead the Federal Reserve to consider further lowering its key interest rate at a meeting later in September.

This is a developing story.

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