August Jobs Report Summary: Which Industries Hired the Most Workers?

Employment growth rose in August, though it fell short of economists’ expectations as job losses in sectors such as manufacturing and retail partly offset gains in other sectors.

Employers added 142,000 jobs in August, the Labor Department said in its monthly payroll report released Friday. That was less than the 160,000 forecast by LSEG economists, while unemployment rate fell to 4.2%, in line with forecasts.

The construction industry saw a significant increase in employment in August across sectors, adding 34,000 jobs – above the average monthly increase of 19,000 over the past 12 months. Heavy and civil engineering construction and nonresidential construction contractors saw an increase of 14,000 jobs.

Healthcare employment totaled 31,000 jobs in August, though that is about half the monthly average of 60,000 over the past year. Healthcare employment was led by outpatient health care services (24,000) and hospitals (10,000).

US ECONOMY ADDED 142,000 JOBS IN AUGUST, FAILING TO MEET EXPECTATIONS

Social assistance added 13,000 jobs, although that was also slower than the 21,000 per month the sector had averaged over the past 12 months. Personal and family services added 18,000 jobs, partly offset by a loss of 2,500 jobs in childcare services and 2,200 jobs in vocational and rehabilitation services.

In other sectors, leisure and hospitality services added 46,000 jobs, mainly due to gains in accommodation and food services (33,500); government sector 24,000 jobs were added – mainly at the local government level (22,000).

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“Nonfarm payrolls rose less than expected in August, with the largest decline in employment coming from manufacturing, the biggest surprise compared with our forecast,” said Nancy Vanden Houten, senior U.S. economist at Oxford Economics.

Employment in industry fell by 24,000 jobs in August, with losses concentrated in durable goods (25,000) – particularly in transportation equipment manufacturing (12,000). The manufacturing sector saw little net change over the past year, losing a net 14,000 jobs compared with August of last year.

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This retail The industry lost 11,000 jobs in August, with significant declines in health and beauty retail (6,600), clothing and accessories (5,500), and general merchandise (2,200). Within the sector, the biggest increases were in construction materials and garden equipment (3,800).

Information technology companies lost 7,000 jobs last month, with the largest declines in sound and film recording (4,200) and publishing (3,700).