U.S. Labor Market Tightens Further

Comment on U.S. Bureau of Labor Statistics Employment Situation Report Gad Levanon, Director, Macroeconomic and Labor Market Research The Conference Board

News provided by

The Conference Board

Sep 04, 2015, 10:00 ET

NEW YORK, Sept. 4, 2015 /PRNewswire/ -- The report released today provides more evidence that the labor market is tightening rapidly. The unemployment rate dropped to 5.1 percent in August, as a result of a large drop in the number of unemployed and a flat labor-force participation rate that has yet to recover. It is therefore not surprising to see average hourly earnings accelerate in recent months.

Job growth in August was somewhat disappointing at just 173,000, but the upward revisions to June and July suggest it is too early to conclude that the US economy is experiencing a moderation in job growth. Given that the labor force is barely growing at all, current job growth rates will continue to rapidly lower the unemployment rate to below 5 percent by year's end.

The job losses in oil-related industries are too small to impact the national unemployment rate, but most oil-producing states are experiencing rising unemployment rates this year. The modest decline in manufacturing jobs may reflect some headwinds from the global slowdown, but could also signal that productivity increases may finally be setting in.

About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

SOURCE The Conference Board