Expected Hiring and Unemployment Figures for August in USA


The August unemployment and hiring figures are expected to be released by the Labor Department any time on Friday. This offers the best opportunity to understand what has been happening in the American economy. According to Wall Street analysts, the US economy is responsible for creating 180,000 employment opportunities in August. Compared to September that created 209,000 jobs, this is an underachievement, but it will help in creating a health market job. One thing to note is that Hurricane Harvey did not affect the statistics in any way as the data was in place before the hurricane began. These experts expect the unemployment rate to stand at 4.3 percent. However, should this rate fall, it will be the lowest since 2001 in February. Nothing much is expected from the hourly earnings. They can only change by 0.2 percent meaning that low unemployment rates and picking hiring have not affected wages. However, the small improvement should be seen as a sign that the US economy is becoming strong. Looking at statistics, approximately 200,000 jobs were added in July, June, and April. This has been a long journey that started eight years ago following the collapse of the US economy.

Experts say that the US economy is nearing the reversion to mean which should be interpreted as the creation of 180,000 jobs per month. However, a chief economist from the United States known as Michael Gapen mentioned that August has always been a soft month when it comes to job creation in the United States. Having worked with Barclays for some time, the economist says that job creation has fallen below expectation in the last five years during August. The United States continues to struggle with the proportion of Americans at work. At the moment, this proportion has stuck at below 63 percent in the last two decades. However, the recent employment opportunities in the last few months is an indication that people who were sidelined by the recession are slowly getting something to do with their livelihoods. Should the number go high, economists say that this should be interpreted that more Americans are willing to enter the labor market. This phenomenon is commonly referred to as slack. There are several theories that have been floated to explain the reason behind stagnating wages. Some people reason that it might have been as a result of new technologies while others blame automation. A wage increase of 0.3 percent is enough to get the attention of the Wall Street.


Please enter your comment!
Please enter your name here