According to data released today by the Bureau of Labor Statistics, total nonfarm payrolls increased by 162,000 jobs in August, well above market expectations for a gain of 53,000. Also, the July figure was revised 44,000 higher from a loss of 23,000 to a gain of 21,000. Leisure and hospitality (+62,000) led job gains, followed by government positions (+35,000), healthcare and social assistance (+28,400), construction (+22,000), durable goods manufacturing (+15,000), and professional and business services (+10,000). Gains were offset by declines in information (-23,000), financial activities (-11,000), and motor vehicles (-4,500). The unemployment rate was unchanged at 4.1%, in line with market expectations. Meanwhile, the labor force participation rate reversed its downward trend, increasing to 61.6% from 61.4% in July.
The ABA Office of the Chief Economist views this month’s strong payroll report and the upward revision to July as a positive catalyst for loan demand for both businesses and consumers. The continued low unemployment rate should also keep consumer credit performance strong.
