U.S. job creation exceeds expectations, unemployment rate falls to 8.4%

In a welcome sign, the U.S. has returned to single digit unemployment rate numbers, falling to 8.4%, down from 10.2% in July. The U.S. economy added 1.4 million jobs in August, indicating the pace of rehiring has eased amid growing fears the nation faces a slow recovery from the coronavirus pandemic.

U.S. job created exceeds expectations, unemployment rate falls to 8.4%According to economists surveyed by Dow Jones, nonfarm payrolls were expected to grow by 1.32 million in August and the unemployment rate was expected to fall to 9.8%.

Megan Henney for FOX Business:

Economists surveyed by Refinitiv expected the report to show that unemployment dropped to 9.8% and the economy added 1.4 million jobs.

The report marks the first time since March the nation’s jobless rate is below 10%.

The unemployment rate sat at 3.5% in February, a half-century low, before the crisis began.

Jeff Cox for CNBC:

The total of those on furlough also fell dramatically. There were 24.2 million people who said they not working because their employer either closed or lost business due to the pandemic, down from 31.3 million in July.

The report comes amid a raft of mostly positive economic signals, with retail sales, real estate and manufacturing showing sharp rebounds off their coronavirus lows. Still, economists worry that absent another round of stimulus from Congress, the boosts in activity could be short-lived. August’s job gains mean that more than half of those displaced during the pandemic are back at work.

Emily McCormick for Yahoo Finance:

Here were the main metrics from the Department of Labor’s August jobs report released Friday morning, compared to consensus estimates compiled by Bloomberg:

• Change in non-farm payrolls: +1.371 million vs. +1.350 million expected, vs. +1.734 million in July
• Unemployment rate: 8.4% vs. 9.8% expected, vs. 10.2% in July
• Average hourly earnings, month over month: 0.4% vs. 0.0% expected, +0.1% in July
• Average hourly earnings, year over year: 4.7% vs. 4.4% expected, 4.7% in July
• Labor force participation rate: 61.7% vs. 61.8% expected, 61.4% in July

“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it,” the Labor Department said in its release Friday morning.

MacDailyNews Take: Good news for the U.S. economy is good news for Apple!

15 Comments

        1. HAHAha Seriously? Do you read the news? The CDC kept trying to assert its scientific belief and he would send them back to change their reports to suite his political beliefs.

          “Deborah Birx said ‘there is nothing from the CDC that I can trust’ in a White House coronavirus task force meeting.” https://www.businessinsider.com/deborah-birx-cdc-comments-coronavirus-task-force-meeting-2020-5

          “Americans are sacrificing a lot based on CDC guidance. It needs to get its act together so the public can trust its edicts.” https://nypost.com/2020/05/22/the-cdcs-continued-screwups-make-it-very-hard-to-trust/

          And that’s just the tip of the iceberg my friend.

            1. HAahaha – dang are you a bot? Were you self-aware in February, March, and April of this year? When testing was a joke? When our plan was “it will disappear in a miracle?” Obama actually created an entire office dedicated to planning and quick response in the case of a pandemic. Your buddy dismantled it. The ways are myriad that t-bag made things worse. Remember how terrible Ebola was? Oh right, it was no big deal. Because it was addressed and contained. Time for this pretend president to return to Fantasy Island and let the adults steer the ship.

    1. OH THANK YOU THANKYOU THANKYOU. THAAAAAAAANK YEW!!!!!!!

      Orange dotard was so brilliant that without even realizing it, he allowed the US census to proceed, so Big Guv hired tens of thousands of temporary workers as it does every decade. Of course he’ll attempt to take credit for that.

      He will also laud massive budget bloats in military and the gazillion federal security agencies, because no matter how much his whiny shrill base hates government and regulation, they love the trigger phrase Law&Order ….. which this administration isn’t delivering either. Then behind closed doors, Bone Spurs disrespects veterans and has done precisely NOTHING for veterans who served the nation and now need services to maintain a decent life.

      The facts are out there but paid troll First Then isn’t interested in presenting objective facts, only opinions and attacks to those who see through the con.

      Drumph is not a conservative, he is a distraction brought to you by the billionaire oligarchs who want a media smokescreen so they can engineer more corporate welfare to be steered to their private bank accounts. They don’t care about working classes. WAKE UP PEOPLE. There really are conservative alternatives. Do not support the nepotistic drumph cult!!!!

  1. Not that he wasn’t a lock to win before (ignore the bogus polls; The Silent Majority doesn’t participate well in public polls), but Trump is now doubly guaranteed to win re-election with unemployment falling to single digits.

    Any so-called “news “of a “close race” is only in the media to attract eyeballs and produce as much political ad spending as possible before the election.

    I am privy to internal polling from both sides of the aisle.

    1. Version 1.0 didn’t accomplish anything productive, what kind of losers and suckers would buy version 2.0?

      Do please explain precisely what is greater today than in the horrible tragic days of 2015…..

  2. An interesting article, but does what is written correspond to reality? According to the data, the unemployment rate is falling, however, it is still difficult to get a job. In addition, many companies, both large and medium and small businesses have gone bankrupt. People have lost their jobs, so I would question these statistics. Of course, in connection with the pandemic, the labor market is transforming and we need to adapt. But in my opinion, the unemployment rate will only increase.

    1. There’s a lot of caveats, beginning with the question of just whose “expectations” were exceeded.

      For the +1.4M new hires, these were offset by two factors. The first is that 25% of these are temp census workers (if not for the temporary court injunction, will be gone by 9/30). Next, there’s also newly unemployed (+833K)…basically, the recovery rate is slowing.

      Next shoe is the September 30th layoffs at airlines/etc when the condition for retaining staff expires for having their pandemic loans forgiven. As such, the early October filings for newly unemployed are very widely expected to notch up strongly.

      LIkewise, there’s the body count of “main street” small businesses which have already closed; they have nothing to bounce back from, and will take a ~half decade to recover from, since these small entrepreneurs have largely had all of their capital drained away over the past six months.

      Similarly, with the effective cessation of +$600 UI a month ago, the boost that this gave to the overall economy is now in retreat. IIRC, I think the numbers I saw was that the “all sources” (not just this) were providing a +15% GDP boost, which has now dropped to +5% … a net -10% GDP decline.

      Meantime, the Federal Reserve’s ongoing QE is going to try to hold the Stock Market prices up, in a “Don’t Fight the Fed” paradigm, but the Market’s being eroded by profit-taking now, because the upcoming election and the Market hates uncertainty. The challenge here is that the FR is going to be under heavy political influence by the Incumbents to try to continue this current melt-up so that the DJIA can be used as a campaign point … the question then becomes simply no longer an “if”, but a “when” for this price bubble to pop.

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