The United States job market showed resilience in August — adding 187,000 jobs to the workforce, surpassing economists' expectations. However, this positive development was accompanied by an uptick in the unemployment rate, rising from 3.5 percent in July to 3.8 percent in August — the highest since February 2022, according to data released by the Labor Department on Friday (September 1).
Furthermore, average hourly earnings showed a modest increase of 0.2 percent for the month and a year-over-year growth of 4.3 percent, both falling slightly below the respective forecasts of 0.3 percent and 4.4 percent.
Economists surveyed by Bloomberg had initially estimated that the job market would see an increase of around 168,000 jobs, making August's performance even more remarkable. Yet, this seemingly positive news was accompanied by a series of unusual factors that influenced the employment figures for the month.
One notable factor impacting the job market was a strike by Hollywood writers and actors, which led to a drop in employment by approximately 18,000 workers. Additionally, the closure of Yellow Trucking resulted in 8,000 non-union job losses, though union employees continued to receive their pay during this period.
Industries closely tied to the entertainment sector, such as restaurants and hotels in cities like Los Angeles, New York, and Chicago, experienced weakened sales and reduced employment due to the strikes. These businesses rely heavily on movie and TV production, and they experienced a decline in sales and employment due to the strikes.
