Kenny Polcari, chief market strategist at SlateStone Wealth, appeared on “Varney & Co.” to react to August's unemployment rate.
Increased employment GDP rose slightly in August but fell short of economists' expectations as job losses in manufacturing, retail and other sectors partly offset gains in other sectors.
In its monthly employment report released on Friday, the Department of Labor said payrolls rose by 142,000 in August, falling short of the 160,000 increase expected by economists at LSEG. Unemployment rate As expected, it fell to 4.2%.
The construction industry saw notable hiring gains across a range of sectors in August, adding 34,000 jobs, above the 19,000 monthly average increase over the past 12 months. Heavy construction and nonresidential specialty construction each added 14,000 jobs.
Health care employment increased by 31,000 in August, about half the monthly average of 60,000 last year. Health care employment was led by outpatient medical services (24,000) and hospitals (10,000).
U.S. economy adds 142,000 jobs in August, below expectations
The construction industry posted a notable increase in August's employment report. (Photographer: Graham Sloane/Bloomberg via Getty Images/Getty Images)
Social assistance added 13,000 jobs, but this is still lower than the sector's monthly average of 21,000 over the past 12 months. Personal and family services added 18,000 jobs, partially offset by the loss of 2,500 jobs in child care services and 2,200 jobs in vocational and rehabilitation services.
Among other sectors, leisure and hospitality services added 46,000 jobs, led by gains in accommodation and food services (33,500). Government Sector 24,000 jobs were added, mostly at the local government level (22,000).
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“Nonfarm payrolls grew less than expected in August and manufacturing payrolls fell sharply, which was the biggest surprise relative to our expectations,” said Nancy Vanden Houten, senior U.S. economist at Oxford Economics.
Manufacturing Jobs 24,000 jobs were lost in August, with the losses concentrated in durable goods (25,000) and especially transportation equipment manufacturing (12,000). The manufacturing sector saw a net loss of 14,000 jobs compared to last August, a small net change over the past year.
Manufacturing jobs fell by 24,000 in August. (Photographer: Emily Elconin/Bloomberg via Getty Images/Getty Images)
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of Retail The industry saw 11,000 job cuts in August, with health and personal care retailers (6,600), clothing and accessories (5,500) and general merchandise (2,200) leading the declines. Within the industry, building materials and garden equipment distributors (3,800) saw the largest job gains.
Companies in the information industry lost 7,000 jobs last month, with the largest declines in motion pictures and recordings (4,200) and publishing (3,700).
