August Employment Report: Slowing Job Gains

By SBE Council at 6 September, 2024, 1:14 pm

by Raymond J. Keating -

The latest employment report from the U.S. Bureau of Labor Statistics provided another signal of a slowing economy. While job growth was positive in August, it also was relatively lackluster.

The establishment survey showed a nonfarm payroll employment gain in August of 142,000.

And the household survey pointed to employment growth of 168,000.

For good measure, the labor force participation rate (62.7 percent) was unchanged compared to July, as was the employment-population ratio (60.0 percent).

Source: Federal Reserve Bank of St. Louis, FRED

And as noted in the above chart, the employment-population ratio has declined slightly since November 2023. This ratio also still remains below the pre-pandemic level of 61.1 percent in February 2020. The same, by the way, goes for the labor force participation rate (62.7 percent in August 2024 versus 63.3 percent in February 2020).

In the end, the U.S. economy has shown amazing resilience in recent times. While economic growth has under-performed for more than 17 years now - a depressing reality that few want to talk about and deal with - the growth that has occurred has been the result of entrepreneurs, businesses, workers and investors pushing ahead despite being assaulted by a pandemic and an overwhelmingly hostile public policy climate focused on more regulation, protectionism, increased government spending, and taxes that are too high and threatening to go higher.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. His latest books on the economy are The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist and The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist.

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