National unemployment rate hits seven-year low
The nation’s unemployment rate reached 5.1 percent in August, dropping from July’s 5.3 percent, the Bureau of Labor Statistics (BLS) said Friday. The rate had not been that low since April 2008, and it beat analysts’ expectations of 5.2 percent, according to Yahoo Finance.
However, the number of jobs added to the economy – 173,000 – was weak. Analysts had expected job gains to be around 217,000 for August. Over the prior 12 months, employment growth had averaged 247,000 per month, the BLS said.
The closely watched data bears on interest-rate decisions by the Federal Reserve. Before Friday’s mixed results were released, many believed the Fed would soon raise interest rates.
The national jobless rate was down a full percentage point in August from a year earlier. Sectors with job gains included health care and social assistance (56,000 positions), and in financial activities (19,000 positions), the BLS said. Manufacturing lost 17,000 positions.
The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.6 hours in August, the BLS said. Also, in August average hourly earnings for all employees rose by 8 cents to $25.09, following a 6-cent gain in July. Hourly earnings have risen by 2.2 percent over the year, the BLS said.
The BLS Friday revised upward its estimates of job gains for June and July. Total nonfarm payroll employment for June was revised from 231,000 to 245,000 jobs gained, and the change for July was revised from 215,000 to 245,000 jobs gained. With these revisions, employment gains in June and July combined were 44,000 more than previously reported.
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