Sept. 6 (UPI) — U.S. job creation in August missed Wall Street expectations for the second straight month, according to new figures released by the Labor Department on Friday, giving more reason for the Federal Reserve to cut interest rates later this month.
Payroll employment increased by 142,000 in August but Dow Jones economists had predicted that the economy had produced 161,000 jobs. The figures gave further credence to the Fed Board to slash interest rates.
The Labor Department said while the total of new August jobs was in line with the average job growth in recent months, it was still below the average monthly growth of 202,000 over the past 12 months. Construction added 34,000 jobs while healthcare grew by 31,000.
“Over the month, heavy and civil engineering construction added 14,000 jobs and employment in nonresidential specialty trade contractors continued to trend up [by 14,000],” the Labor Department said.
The department said the healthcare gains were just half of its average of 60,000 monthly over the past 12 months. Ambulatory healthcare services led the hiring in that section with 24,000 jobs. Hospitals added 10,000 more jobs.
Manufacturing lost 24,000 jobs in its sector in August, sparked by a loss of 25,000 jobs among durable goods industries.
Friday’s report comes on the heels of the economy creating 114,000 jobs in July, missing what experts had expected. The ADP Employment report that measures nonfarm private payrolls indicated on Thursday that the economy created 99,000 jobs, which also missed what national economists predicted.