On Friday, the US Labour Department’s closely monitored non-farm payrolls had taken a giant leap back as the economy had created the lowest number of jobs since January last month with hiring in leisure and hospitality sector having been largely hindered due to a rapid rise in delta cases, engendering a lull in labour demands on restaurants and hotels.
Nonetheless, a microscopic appraisal of August non-farm payrolls data had added to an unprecedented silver lining to the economy with unemployment rate dropping to a 17-month low of 5.2 per cent, while July job growth was revised sharply higher.
On top of that, US employers continued to hike wages largely in a bid to hold on existing workers with a gauge of wage increases rose by 0.6 per cent last month. Overall, despite a sharp downside momentum in US non-farm payrolls, other details released in the US Labour Department’s closely watched job report had illustrated an underlying resilience in US economy, much of which is believed to be stemming from massive Government stimulus alongside a dovish stance from the US Federal Reserve.
US non-farm payrolls post smallest gain in seven months
According to US Labour Department’s much-anticipated non-farm payrolls report released earlier in the day, US economy had added just 235,000 jobs last month, remarking the smallest job gains in seven months, however, data from July was sharply revised higher to 1.053 million jobs compared to a previously reported reading of 943,000.
Meanwhile, pointing towards a sprightlier side of the coin, a Professor of Practice at Boston College, Brian Bethune said, “It is important to keep the right perspective.
Given the supply chain constraints and the ongoing battle to lasso COVID-19 to the ground, the economy is performing exceptionally well. ”