Search
 

Payrolls make smallest jump this year

American employers hired fewer workers than forecast in August and the jobless rate dropped because people left the workforce, bolstering those on the Federal Reserve who want to be more deliberate in removing monetary stimulus.

By Victoria Stilwell | Updated on September 05, 2014
(AP Photo/Alan Diaz)
Sept. 5 (Bloomberg) — American employers hired fewer workers than forecast in August and the jobless rate dropped because people left the workforce, bolstering those on the Federal Reserve who want to be more deliberate in removing monetary stimulus.   The 142,000 advance in payrolls was smaller than the lowest estimate in a Bloomberg survey and followed a revised 212,000 gain in July, figures from the Labor Department showed today in Washington. The median estimate was for a 230,000 increase. The unemployment rate fell to 6.1 percent from 6.2 percent in July, reflecting a drop in joblessness among teenagers.   Employers who boosted headcounts in the first half of the year may be more restrained in their hiring as they await even faster economic growth. Fed Chair Janet Yellen and her colleagues will use today’s report to help discern the extent of slack in the labor market as they pare back record monetary stimulus, while keeping interest rates low at the same time.   “The shortfall in payrolls is disappointing, but it sure looks like a fluke, not a trend,” said Diane Swonk, chief economist at Mesirow Financial Inc. in Chicago. “It gives Yellen a little wiggle room to do what she wants to do, and that is end the tapering and not start raising rates anytime soon.”   Stock-index futures pared declines after the report fueled speculation the Fed won’t have to raise interest rates soon. The contract on the Standard & Poor’s 500 Index expiring this month fell 0.1 percent to 1,995.7 at 9:23 a.m. in New York.

Economists’ estimates

Estimates in the Bloomberg survey of 91 economists ranged from increases of 190,000 to 310,000 after a previously reported 209,000 July gain. The August advance interrupted six straight months of payroll gains exceeding 200,000. Revisions to prior reports subtracted a total of 28,000 jobs from overall payrolls in the previous two months.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.