Unemployment in the United State hit a five month low of 5.7% in August
, down from 5.9% in July, according to figures released by the Labor Department on Friday.
The number of workers on U.S. payrolls increased by 39,000 in August, indicating still relatively weak job growth. July job gains were revised up from 6,000 to 67,000, while the government trimmed its June increase from 66,000 to 34,000 new jobs.
The manufacturing sector continued to shed workers, reporting a 25th consecutive monthly drop, losing 68,000 workers in August.
“Total hours worked in the economy rose 0.3% following a decline in July," says Newport Communications Senior Economist Jim Haughey. "The June/July slowdown in the pace of economic recovery appears to be over, with a rise to almost average GDP growth likely for the rest of the year.”
He says the two industries with the biggest job losses were no surprise. Manufacturing jobs fell 68,000 after declining only 50,000 in the previous three months. Retailers dropped 55,000 jobs after little change in previous months.
“Early reports of retail sales declines in August foretold the retail job cuts," Haughey says. "In turn, reduced retail orders from manufacturers and several large retail bankruptcies reduced manufacturing production schedules."
He notes these job losses were offset by more government jobs in security and education, large gains in services, a pickup in construction jobs fueled by the housing/remodeling boom, and an encouraging 51,000 rise in jobs at temporary worker agencies.
“An increase in temporary and contract jobs usually means more permanent hires within a few months” he says.