Published: Mon, September 10, 2018
Markets | By Jeffery Armstrong

US job growth surges; annual wage growth largest since 2009

US job growth surges; annual wage growth largest since 2009

The payroll gain ends a seven-year streak where the first reading for August has been below the median analyst estimate.

On a more discouraging note, the revisions for the two previous months - June and July - were unusually bad, with a combined loss of 50,000 jobs as compared to previous BLS reports.

Service providers increased payrolls by 178,000 workers, a three-month high. Still, monthly gains for the year are averaging a robust 207,000. They increased payrolls by 18,000 jobs in July, while government employment fell 3,000 in August. Most industries expanded, with particular job growth in health care, education, business and professional services, hospitality and construction.

"The labour market looks great", said Ward McCarthy, chief financial economist at Jefferies in NY.

More news: 100 sick, Emirates flight struck by illness

Notably, the manufacturing sector lost about 3,000 jobs in August. The large increase could indicate that wage growth is finally picking up more rapidly amid an intense competition for workers.

Wholesale trade added an additional 22,000, transportation and warehousing added 20,000 and mining gained 6,000.

Employment at sporting goods, hobby, book and music stores rebounded by 9,200 jobs in August after shedding 30,300 jobs in July related to the closing of all Toys-R-Us stores.

Strengthening wage growth underscores tightening labour market conditions and cements expectations for a third interest rate increase from the Federal Reserve this year when policymakers meet on Sept 25 to 26. Here, a job seeker holds an employment flier during a hiring event at an Aldi Supermarket in Darien, Ill., in July. That raised the annual increase in wages to 2.9 percent in August, the largest gain since June 2009, from 2.7 percent in July. On Friday morning, the USA government will release its employment report for the month of August.

More news: Trump's top aides scramble to deny authorship of anonymous op-ed

In August, factories expanded at their quickest pace in 14 years, according to a survey of purchasing managers.

USA businesses added 204,000 jobs while federal, state and local governments lost 3,000.

A wider measure of unemployment - that includes discouraged workers who have given up their job searches and part-time employees who prefer full-time positions - dropped from 7.5% to 7.4%, lowest since April 2001. The tight labor market is providing more opportunities to blacks and other disadvantaged groups that traditionally have had a tougher time landing jobs.

United States job growth accelerated in August, with wages notching their largest annual increase in nine years.

More news: Liverpool still in preseason mode despite unbeaten start Jurgen Klopp

Like this: