August jobs report breakdown: Which industries hired the most workers?

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Job growth ticked up in August even though it fell short of economists’ expectations as job losses in industries like manufacturing and retail partially offset other sectors’ gains.

Employers added 142,000 jobs in August, the Labor Department said in its monthly payroll report released Friday. That fell short of the 160,000 gain forecast by LSEG economists, while the unemployment rate ticked lower to 4.2%, in line with their projections.

The construction industry saw notable employment gains in August among the various sectors, adding 34,000 jobs – above the average monthly gain of 19,000 over the past 12 months. Heavy and civil engineering construction and nonresidential specialty contractors each saw gains of 14,000 jobs.

Hiring in the health care sector came in at 31,000 jobs added in August, though that is about half of the monthly average of 60,000 over the last year. The health care industry’s hiring was led by ambulatory health care services (24,000) and hospitals (10,000).

US ECONOMY ADDED 142,000 JOBS IN AUGUST, MISSING EXPECTATIONS

Social assistance added 13,000 jobs, though that figure was also slower than the 21,000 per month the sector saw on average in the past 12 months. Individual and family services added 18,000 jobs, which was partially offset by job losses of 2,500 in child care services and 2,200 in vocational and rehabilitation services.

In other sectors, leisure and hospitality services added 46,000 jobs, led by gains in accommodation and food services (33,500); while the government sector added 24,000 jobs – primarily at the local government level (22,000).

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“Nonfarm payrolls increased by less than expected in August, with a sharp decline in manufacturing jobs, the biggest surprise relative to our forecast,” said Nancy Vanden Houten, senior U.S. economist at Oxford Economics.

Manufacturing employment declined by 24,000 jobs in August, with the losses concentrated in durable goods (25,000) – specifically in transportation equipment manufacturing (12,000). The manufacturing sector has seen a slight net change over the past year, having lost a net 14,000 jobs compared to last August.

Manufacturing workers in auto industry

The retail trade industry shed 11,000 jobs in August, with notable declines in health and personal care retailers (6,600), clothing and accessories (5,500) as well as general merchandise (2,200). Within the sector, the largest gains were at building material and garden equipment dealers (3,800).

Businesses in the information industry lost 7,000 jobs last month, with the largest declines in motion picture and sound recording (4,200) and publishing (3,700).

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