August 2014 US jobs number of 142,000 lower than most pessimistic estimates in Bloomberg survey, 230,000 increase was expected. Two prior months revised down 28,000

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9/5/14, "U.S. Payroll Rise Is Weakest This Year at 142,000 for August," Bloomberg Business Week, by Victoria Stilwell 

"American employers hired fewer workers than forecast in August and the jobless rate dropped because people left the workforce, bolstering those on the Federal Reserve who want to be more deliberate in removing monetary stimulus.

The 142,000 advance in payrolls was the smallest this year and followed a revised 212,000 gain in July, figures from the Labor Department showed today in Washington. The reading was lower than the most pessimistic estimate in a Bloomberg survey of economists. The unemployment rate fell to 6.1 percent last month from 6.2 percent, reflecting a drop in joblessness among teenagers as well as the decline in labor participation....

Among the industries that dragged down overall payroll growth in August were retail, transportation and manufacturing....

The median projection in the Bloomberg survey of 91 economists called for a 230,000 increase in August payrolls. Estimates ranged from increases of 190,000 to 310,000 after a previously reported 209,000 July gain. Revisions to prior reports subtracted a total of 28,000 jobs from overall payrolls in the previous two months. 

The participation rate, which indicates the share of working-age people in the labor force, decreased 0.1 percentage point to 62.8 percent, matching the lowest since 1978.... 

Private hiring increased 134,000 in August, also the smallest gain this year. Employment at private service providers increased 112,000, while payrolls were unchanged at factories. Construction companies added 20,000 workers and retail employment dropped by 8,400 in August. 

The decline in employment in the retail trade industry reflected a 17,100 decrease in payrolls at grocery stores....

Department stores also cut back in August, today’s figures showed....

Household purchases unexpectedly decreased 0.1 percent in July, the first drop in six months, after rising 0.4 percent the prior month, according to Commerce Department data. Incomes rose at the slowest pace of the year, and savings climbed to the highest level since the end of 2012."...




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