According to the just released report by the U.S. Bureau of Labor Statistics the total nonfarm payroll employment increased by 169,000 in August. However, there was not much significant improvement in the unemployment rate as it still stood higher at 7.3 percent. The organization reported that employment rose in retail trade and health care but declined in information.
The data shows that it was the retail trade that performed better and added 44,000 jobs in August. In fact, it has added 393,000 jobs in the last 12 months. A significant improvement in employment opportunities has been recorded in clothing stores (+14,000), food and beverage stores (+12,000), general merchandise stores (+9,000), and electronics and appliance stores (+4,000).
The U.S. Bureau of Labor Statistics also reported that employment in health care increased by 33,000 in August. However, a large chunk of jobs were not in core medical but in ambulatory care services (+27,000). Apart from retail and health care, professional and business services sector has been doing well recently.
The report from the U.S. Bureau of Labor Statistics says that in the last month more than 23,000 jobs were created in professional and business services which have increased the total jobs in the past 12 months where they have gone up to 614,000 jobs.
However, despite all the growth shown by The U.S. Bureau of Labor Statistics, critics say that the addition of 169,000 new jobs in August is not what was expected. They also opine that the report coming just before the scheduled meeting of the U.S. Federal Reserve which may decide on the cutting the stimulus package, may give a point to rethink.
Though the U.S. Labor Department says that the not so significant growth in employment opportunities is due to the fact that more Americans stopped looking for work, the monthly jobs figures are one of the most closely watched U.S. economic indicators which the U.S. Federal Reserve cannot ignore in its scheduled meeting.
Analysts suggest that the August jobs report does not meet the expectations and it is a bit of a disappointment. Also, despite the U.S. economy doing well recently, observers had expected for better employment data who now consider that the zigs and zags in the data shows that job growth in August isn’t much different than it’s been over the past two years.
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