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The Employment Situation – August 2019

Updated : October 30th, 2019

The Employment Situation – August 2019

Key Points:

  •  Total nonfarm payroll employment in August rose by 130,000. The rise in June was 178,000
  •  Increase in the average hourly earnings to 0.4 percent in August  from 0.3 percent in July
  • The labor participation rate has risen from 63 percent in July to 63.2 percent in August

 

The employment situation for August shows that the rate of unemployment remains unchanged at 3.7 percent. The report for August contains a mixed bag of results, where some indicators have seen a slump, whereas others have seen a promising rise. 

Major Ups and Downs in August

The total nonfarm payroll employment rose by 130,000. This is less than the revised average of 156,000 per month for the last three months. The job growth rate for the month has been poorer than in the previous months.

The data for June and July, although indicate higher growth than August, has been revised from the previously acknowledged figures. The payroll growth for the month of June has been revised from 193,000 to 178,000, and the payroll increase for July has been revised from 164,000 to 159,000 as per the Bureau of Labor Statistics

The payroll growth for August has been considerably lesser than the rise witnessed in June and July, and this indicates a major slowdown in job creation for the month of August.

The challenges faced in August was not helped by the fact that, apart from the federal hiring, private payroll only grew by 96,000. This is considered to be the slowest pace of growth since February 2019. Also, the rise in federal hiring is largely due to the hiring of temporary workers for the 2020 survey. 

On the positive side, the month of August has also witnessed an increase in the average hourly earnings, which rose to 0.4 percent from 0.3 percent in July. Also, the labor participation rate has seen a marginal rise from 63 percent to 63.2 percent

Establishment Survey Data

The payroll growth (130,000) in August has been less than the average growth recorded so far in 2019, which stands at 158,000. The slump appears to be greater when compared to the overall average of the year 2018, which stood at 223,000.

There was an increase in private-sector employment by 96,000 with notable gains made in the healthcare sector and the financial sector. The public-sector employment rose by 28,000, largely due to the recruitment of 25,000 temporary employees for 2020 census work.

The health care sector has added 24,000 jobs in August, taking the value for the last 12 months to 392,000. The financial sector too added 15,000 jobs for the month, taking its 12-month tally to 111,000. Other sectors that added jobs in August include the professional and business services sector, social assistance, and mining.

Sectors that changed little to none in August include construction, manufacturing, transportation

and warehousing, and leisure and hospitality. The retail sector, on the other hand, lost about 15,000 jobs in the month.

Household Survey Data

There are no major changes in the unemployment rate of the major worker groups. The unemployment rate for major worker groups stands at:

Workers GroupsUnemployment Rates
Adult Men3.4 percent
Adult Women3.3 percent
Teenagers12.6 percent
White population3.4 percent
Black population5.5 percent
Hispanic population4.2 percent
Asian population2.8 percent

According to the data from August, the unemployment for ‘adult women’, ‘teenagers’, ‘Black population’ and ‘Hispanic population’ has seen a marginal decrease in the rate of unemployment. 

The rate of labor force participation and the employment-population ratio has seen a marginal increase in August. Labor participation rate 63.2 percent, while the employment-population ratio also went up to 60.9 percent in August. 

Final Analysis

The rate of job growth has considerably slowed down. Experts point out that the disagreements in trade deals between the United States and China could be one of the important reasons for the slump the US is facing in job creation. 

However, the increasing wage rate and labor participation rate indicates a positive sign. It shows that people may make more money per hour than the earlier weeks and that more and more people are entering the job market. 

  

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  1. I work for a church pre school program and I have lost my job due to coronavirus. When I applied for unemployment in Texas it says that two does not except this employer as my last employer. I’ve been working there for 13 years. What do I do?

  2. Chad ….. how do I get thru when it wont accept my ID or my password. I change it 5 times and it still wont work. Calling is not working at any time when I spend and whole day calling back to back to get thru. why don’t they just help or force the employers ( company) to place they claims in for their workers like GM did……I NEED HELP…PLEASE.

    1. Chad,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

  3. i live in ga…all the day cares have shut down my wife and i have full time jobs,,,but i have to leave my company which i have been there for over two years,to take care of our child….can i still collect unemployment…this covid virus is why i have to leave my job…

    1. Gary,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

  4. are you kidding me my son lost his job on 10/17/2020 hes mentally challenged and cant file on his own because he doesn’t know how so I started going to sites trying to file for him and the residence inn Marriott promised to help him and have done zip . ive tried 10 different sites and I keep getting dropped wen I complete forms and push submit. 12 days now n still cant file a claim.

    1. Martin,

      There’s only one website you should be trying from. Please let us know your state and we’ll share the website information.

  5. I have submitted my forms EXACTLY as I was instructed too on line. Even though I have filled out the paperwork correctly I keep getting emails asking for me to fill out the form that I have done multiple times already. Remuneration – Claimant Questionnaire is the issue. I got online and requested a phone call. 3 days ago. I just need to know that you guys received everything and I don’t owe any more information.
    Nobody answers the 617-626-6800 number. Just get directed to the internet. Well, you can’t speak with the internet. I am getting mixed messages and I fret that this will delay any benefits.
    Could someone please give me a call.

    1. James,

      Please try finding answers online since there might be limited phone support due to the shortage of staffing. This is a private forum and we’ll not be able to arrange a callback.

  6. I work for a church that has grown it’s congregation over almost 40 years and we now have 26 mostly full time employees, most being here many years. Will our employees be able to file and receive benefits since we are an EXEMPT from paying unemployment industry? State of Florida

  7. My unemployment benefits ran out 3/1/2020 am I able to file for extended benefits ? I live in California and am 62 years old.

    1. Ariana,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

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