US Job Growth Slows in August Amid Manufacturing Decline

Friday 6th September 2024 – 14:07 (BST)

The US economy added 142,000 jobs in August, falling short of the 160,000 forecast but surpassing the revised 89,000 jobs added in July. Sectors with notable growth included construction (+34,000), healthcare (+31,000), and government (+24,000). Meanwhile, manufacturing saw a decline of 24,000 jobs – largely due to losses in durable goods industries.

Wage growth continued to outpace expectations with average hourly earnings rising by 0.4% to $35.21 in August, slightly above the predicted 0.3% increase. Over the past year wages have grown by 3.8%, surpassing market estimates.

However the labour market is cooling with revised June and July data showing 86,000 fewer jobs than previously reported, reflecting the broader trend of slowing employment growth.

It’s yet to be seen if the latest data will ease investor concerns over a wider US recession but it does slightly increase the likelihood of interest rate cuts by the Federal Reserve on September 18th. GBP/USD tested $1.32 whilst EUR/USD tested 1.11 immediately following the news, before falling back sharply to key levels of resistance.