The Job Market Keeps Turning Out Jobs

Despite inflation’s headwinds, the economy keeps turning out jobs. Job gains were 315,000 in August. Expectations were between 285,000 and 350,000. The biggest issue in the job market continues to be too few workers in the labor force. We took a step in the right direction on that front.

The labor force grew by 786,000. We are now 163,000 above the pre-pandemic participation level. But the population and the economy have grown over the past two-and-half years, and the participation rate is still below its pre-pandemic level.

If we had the same participation rate now as then, there would be 2.75 million more workers in the labor force.

Wages rose 0.3% from July and 5.2% annually from August 2021. Inflation is above that annual growth so inflation-adjusted wages are still declining.

Education and health services added 68,000; professional business services 68,000; wholesale and retail trade 59,000; leisure and hospitality 31,000; manufacturing 22,000; financial activities 17,000; and construction 16,000.

Bottom line: The robust jobs market will quell talk of a recession. August was a good report – especially the jump in the labor force – but we need to get even more workers back into the market to fill job openings that remain near record highs.

KPGZ News - Brian Watts contributed to this story