In a welcome sign, the United States has returned to single-digit unemployment rates, falling to 8.4%, down from 10.2% in July. The US economy added 1.4 million jobs in August, indicating that the pace of recovery has slowed in growing fears the nation is facing a slow recovery from the coronavirus pandemic.
According to economists surveyed by the Dow Jones, the wage component for farms was expected to grow by 1.32 million in August, and unemployment is expected to fall to 9.8%.
Megan Henney for FOX Business:
Economists surveyed by Refinitiv expected the report to show that unemployment fell to 9.8% and the economy added 1.4 million jobs.
The report marks the first time since March that the country’s unemployed are below 10%.
Unemployment was 3.5% in February, half a century low, before the crisis began.
Jeff Cox for CNBC:
Overall, those who were on furlough dropped dramatically. There were 24.2 million people who said they did not work because the employer either closed down or lost its business due to the pandemic, down from 31.3 million in July.
The report comes amid a series of positive economic signals, with retail, real estate and manufacturing showing a sharp decline from their lowest coronavirus. Nevertheless, economists are concerned that the absence of a new stimulus from Congress could boost short-term activity. August’s labor gains mean that more than half of those displaced during the pandemic are back at work.
Emily McCormick for Yahoo Finance:
Here were the main measurements from the Ministry of Labor’s work report in August, published on Friday morning, compared with consensus estimates compiled by Bloomberg:
• Change in wages from non-farms: +1,371 million against +1,350 million expected, against + 1,734 million in July
• Unemployment: 8.4% against 9.8% expected, against 10.2% in July
• Average hourly income, month over month: 0.4% against 0.0% expected, + 0.1% in July
• Average hourly income, year over year: 4.7% against 4.4% expected, 4.7% in July
• Labor force: 61.7% against 61.8% expected, 61.4% in July
“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed by the coronavirus (COVID-19) pandemic and efforts to curb it,” the Labor Department said in its release Friday morning.
MacDailyNews Take: Good news for the US economy is good news for Apple!