Unemployment Rate Falls to 5.1%

Unemployment

The rate of unemployment in the United States fell to 5.1% in August, CNN Money reports. Unemployment was at about 10% at the peak of the Great Recession in the first decade of this century. 173,000 new jobs were added to the economy in August, which is a promising sign that the country and economy are moving in the right direction—but the number is not what was expected.

The economy was expected to generate closer to 220,000 new jobs last month, though August is “typically the quirkiest of the year,” says CNBC, and Wall Street economists have been wrong about their August expectations no fewer than 21 times in almost 30 years. The project jobs output for August was around 203,000, and though the numbers themselves are smaller than anticipated, many of the jobs that were added are high-income ones. 56,000 jobs were added in health care; 19,000 to financial services; and 33,000 to the professional services industry.

But the bag is still mixed. Despite the introduction of new jobs and the fall of the unemployment rate, the economy isn’t growing as expected. 1.7 million jobs have been added in total for this year, but last year at this time that number was 1.9 million. So why is the rate of growth so slow? Well, there’s really no clear cut answer to that question, according to financial experts. Chief investment strategist at private bank Brown Brothers Harriman Scott Clemens is neither bothered nor excited by August’s numbers. “It’s the same old, same old,” he says. “This just continues the trend that we’ve seen where all the sectors of employment continue to improve modestly.”

However, though there were fewer jobs created in August than expected, the economy is growing—even if slowly. “the mixed report did little to alter views that the U.S. economy remains vibrant despite volatile global financial markets and slowing Chinese growth,” Reuters reported, though it remains to be seen whether the Federal Reserve will raise interest rates at its meeting later this month.

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About DevonJ140
I am currently an Accounting Director living in New York City. I love reading and learning more about business, finance, tech, and current events.

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