A report that was issued on Wednesday says that only 190,000 jobs were added, in spite of the much more generous predictions of about 200,000 gains.
The numbers were issued by Automatic Data Processing Inc., which is an automatic payroll processor and Moody’s Analytics , which is a forecasting firm and is based on data released by ADP clients.
July was not very generous either, as only 177,000 job gains were recorded, in spite of the fact that about 185,000 were expected.
Chief economist of Moody’s Analytics, Mark Zandi, said that employers remain cautious about hiring too many people, but in spite of that, it is a positive fact that the employment rate is on increase mode:
“Job growth remains strong and broad-based, except in the energy industry, which continues to shed jobs,” he said.
He also added that large companies are more reluctant to hiring new people than smaller businesses. Thus, small companies, with 50 employees or fewer than that, have added about 85,000 new workers in August, compared to the 59,000 they added a month before.
Companies with more than 50 employees but less than 499 boosted payrolls with 66,000 new employees. Large companies which have more than 500 employees only added about 40,000 people.
As it had been expected, the manufacturing industry did not hire too many people – only about 7,000, but the number is much higher than the one recorded in July (2,000). Construction companies are constantly developing, as they added 17,000 new people, compared to 15,000 in July. It is no wonder this sector is flourishing, given the new increasing demand for accommodation.
The service sector was the one that thrived the most, as it added about 173,000 new jobs.
Even if the numbers are not as fabulous as expected, economists are positive about employment in general. It is a good thing that the unemployment rates are decreasing. This month, it was reported about 5.2 percent of the people living in the United States are unemployed, while last month, 5.3 percent were without a job.
Moreover, incomes are increasing, even if at a very slow pace. That makes consumers happier and has a positive effect on the economy.
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