The US labor market showed signs of recovery in August after a surprisingly weak performance the previous month.
Employers added around 142,000 jobs last month, a notable rebound from July’s disappointing figures. The July job count was revised down from 114,000 to 89,000, as reported by the Bureau of Labor Statistics on Friday. The unemployment rate fell slightly to 4.2% from 4.3%.
Economists had predicted a net gain of 160,000 jobs and a drop in the unemployment rate to 4.2%, according to FactSet. August’s job growth aligns with the average increase over the past three months but falls short of the 202,000 monthly average seen over the past year.
In Indiana, construction workers were busy starting their day at the new Republic Airlines headquarters on August 27, 2024.
While the labor market has cooled down over the past year—expected as supply and demand for workers stabilize post-pandemic—recent months have raised concerns about whether job growth is simply slowing or deteriorating. July’s unexpectedly low jobs report had sparked fears of a potential economic downturn.
Although July’s figures were revised even lower and June’s numbers were adjusted down by 61,000 to 118,000, August’s report provided a more solid performance. Still, given the revisions and the fact that August’s results were below expectations, it’s unclear how this will affect the broader labor market and economy.