Chart of the Day: Net New Jobs in August

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The American economy added 173,000 new jobs last month, 90,000 of which were needed to keep up with population growth. This means that net job growth clocked in at 83,000 jobs. The headline unemployment rate fell from 5.3 percent to 5.1 percent. Hourly earnings of production and nonsupervisory employees were up at an annualized rate of 2.9 percent.

Roughly speaking, there was nothing interesting in the guts of the report. The unemployment rate was down both because there were more employed workers and because the size of the labor force shrank a bit. The labor force participation rate stayed steady. There were no big surprises in any particular industry.

This has left everyone free to speculate on what this report means for the prospect of the Fed increasing interest rates later this month. On the one hand, the jobs report fell a bit below expectations. On the other hand, the unemployment rate was down nicely and wages showed a bit of life. On the third hand—well, everyone’s just guessing here. Basically, this month’s jobs report is ordinary enough that it probably won’t have much impact at all. The Fed will consider overseas weakness, labor market slack, and all the other things that have been on their plate for a while. If they were planning to raise rates before this report came out, they probably still are.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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