Posts Tagged pay increase
People are back at work after a long Labor Day weekend – though perhaps not as many as economists had predicted. Let’s take a look at the August 2016 BLS jobs report.
1. Pay didn’t increase as much as predicted. Average hourly wages were only up .12% (3 cents) from last month, whereas last year they were up 2.4% from a year ago. According to the Wall Street Journal, this could have something to do with the fact that the lowest-paying sector – “food services and drinking places” – also added the most jobs of the month.
2. Fewer jobs were added. While 270,000 jobs were added in July, only 151,000 jobs were added in August. That’s a sharp decrease, and also less than the consensus, which had been 180,000. Still, that number is considered enough to absorb workforce growth, says bankrate.com.
3. It’s not as bad as it sounds. For some reason, possibly due to school starting, August numbers have often been disappointing. This is why economists say month-by-month reporting isn’t as reliable as year-by-year reporting. Plus, while the numbers aren’t great, they still show steady if slow growth.