Unemployment Report: August Breakdown with CEO of Patrice & Associates
Unemployment Report: August Breakdown
Total nonfarm payroll employment increased by 142,000 in August, while the unemployment rate edged slightly downward to 4.2%, according to the U.S. Bureau of Labor Statistics. Job gains were primarily seen in construction and healthcare.
Employment remained largely unchanged across other major industries, including mining, wholesale trade, retail trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, other services, and government.
Revisions to prior months’ data show a decrease in nonfarm payroll employment for June, adjusted down by 61,000 from +179,000 to +118,000, and for July, revised down by 25,000 from +114,000 to +89,000. While revisions are not uncommon, the extent of these downward adjustments is concerning.
August’s employment total is in line with job growth seen over the past three months but falls well below the 12-month average monthly gain of 202,000.
The July JOLTS report shows 7.7 million job openings, the lowest level since January 2021. This is a steep decline from the peak of 12.2 million in March 2022, signaling a cooling labor market as employers adjust hiring plans due to economic uncertainty or shifts in demand.
Soft landings are often challenging. The slowdown in job openings suggests economic stabilization, but to achieve a “soft landing,” Federal Reserve Chair Jerome H. Powell has emphasized the importance of preserving opportunities for workers. He has signaled that the central bank will begin lowering interest rates in mid-September, but the question remains: by how much?
At Patrice & Associates, we have seen a moderation in job openings. However, due to the persistent tightness in the labor market, clients are increasingly recognizing the need for recruiting firms to help them fill positions. In the past month, we’ve noticed an uptick in companies reaching out to our corporate headquarters for assistance, particularly with roles they struggle to fill on their own.
Using our AI recruitment tools and proprietary methodology, we can source candidates that companies might otherwise miss, providing value for both small and large businesses in this uncertain economy. We anticipate that once the Fed begins cutting rates, we’ll see a renewed rise in job openings, with the most significant growth likely after the election.
Brian Miller, CEO
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