The Bureau of Labor Statistics released the August Jobs Report showing 130,000 jobs added during the month. Year-over-year wage growth remains 3.2%, with a very strong three month wage growth showing gains of 4.2%.
Overall the top line growth of 130k jobs sounds modest; but jumpin’ ju-ju bones, the data underneath the top line is extremely strong and highlights exactly why wage rates have been rapidly increasing over the past three months. [Table A – BLS Report]
- The civilian labor force increased by 571,000 workers in August.
- The number of employed Americans jumped up by 590,000 in August.
- The number of people not in the labor force dropped by 364,000 in August.
- The workforce participation rate increased 0.2 to 63.2 percent in August.
With a tight labor market we are seeing the natural upward pressure on wages. In the past four months wage rates have increased 4.2% [Table B-3], and from the employment data it appears those large wage incentives are bringing people back into the workforce.
Year-over-year the number of employed Americans has grown by 2,274,000 people.