August Jobs Report: 173,000 New Jobs Added, Unemployment Rate Drops

The latest jobs numbers are out from the federal government. What do they mean for job seekers and employers? Here’s a quick take from Glassdoor’s Chief Economist Dr. Andrew Chamberlain: Today’s jobs report shows that despite recent stock market volatility and a slowing Chinese economy, the U.S. labor market still shows tremendous momentum. With 173,000 new jobs created in August and the unemployment rate down to 5.1 percent today’s report offers reassuring news for Fed policymakers looking to return interest rates to pre-crisis levels in coming months. Though the number of new jobs added in August is lower than most economists predicted, July’s report was revised up by 30,000 to 245,000 new jobs predicted. Wage growth is up, but remains at a sluggish pace of 2.2 percent from one year ago, below most economist’s expectations. By year-end, we’re expecting wage growth to accelerate to the 2.4-2.6 percent range as labor markets continue tightening. Overall, today’s jobs report points to a resilient U.S. job market—one that continues to defy the headwinds of a strong U.S. dollar, plummeting oil prices and continued international turmoil. To speak with Dr. Andrew Chamberlain about today’s jobs report or to discuss labor market trends, contact pr at Glassdoor dot com. For the latest economics and labor market updates, follow @adchamberlain on Twitter.