Economy

Economic Commentary

Economic Calendar

Global Economies

Global Economic Calendar

U.S. jobs recovery loses some steam

The jobs market lost some steam in August, with only 142,000 jobs added last month.

The consensus forecast from economists was for a jobs gain of 226,000 jobs. The unemployment rate dipped slightly to 6.1%, down from 6.2% in July. That was in line with estimates, but it wasn't much for job seekers to celebrate.

This breaks a streak of six straight months with more than 200,000 jobs added.

It may raise questions about the strength of the job market's rebound. Many Americans already do not feel that the job market has fully recovered from the Great Recession.

U.S. Federal Reserve Chair Janet Yellen has also repeatedly stressed that the labour market could be stronger. So Friday's numbers are unlikely to change the Fed's decision to keep a key short-term rate at historic lows for the foreseeable future in an effort to stimulate more job growth.

But it's not all bad news. The economy has averaged a gain of nearly 220,000 jobs added a month, and the payroll gains were revised higher for both June and July.

Still, there were other lackluster signs in the job report. The so-called "underemployment rate," which counts discouraged workers who have given up looking for jobs and people working part-time who would rather have a full-time job, is 12%. That's down from July but still nearly double the official unemployment rate.

And the labour force participation rate, which measures how many people of working age are actually in the job market, remained near its lowest levels in more than 35 years. That's a function of more and more people, particularly women and retiring baby boomers, dropping out of the workforce.