Economists surveyed by Reuters had planned an advance of the payrolls of 75,000, after the increase of 73,000 registered in July.
The initial count of jobs in August has tended to show weak bias, with subsequent reviews that have shown strength. Estimates ranged between the absence of employment and the creation of 144,000 positions.
The report followed news this week that in July there were more unemployed people than vacancies for the first time from the Covid-19 pandemic.
The growth of employment has passed at a speed of stagnation, with economists blaming the import tariffs of President Donald Trump and a repression of immigration that has reduced the supply of labor. The weakness of the labor market comes mainly from hiring.
Trump’s encumbrances, which have raised the country’s average tariff rate at the highest level since 1934, fueled the fears of inflation and caused the FED to pause its cycle of trimming of interest rates.
Just when part of the uncertainty about commercial policy began to dissipate, with most tariffs already in force, an American appeal court ruled last Friday that many of the taxes were illegal, which keeps companies in a state of uncertainty.
The unemployment rate increased from 4.2% in July.
Low rotation in labor market
Trump dismissed last month to the BLS commissioner, Erika Mtntarfer, accusing her without evidence of falsifying employment data. This occurred after the strong downward reviews of the May and June payroll counts.
But economists have defended Mcentofer and have attributed reviews to the “Birth and Death” model, a method that the BLS uses to try to estimate how many jobs were won or lost due to the opening or closing of companies in a certain month.
“We are in a low -rotation labor market, in which many hiring or layoffs are not produced. That means the growth of the employment we see in the economy is mainly due to the net birth of new companies,” said Ernie Tedeschi, director of Economics of the Budget Laboratory of the University of Yale.
“But it turns out that this is the most accused part. It is the most sensitive to review, because it is the result of an explicit modeling by BLS, more than something they can survey,” he added.
It is likely that the slow growth of employment will be reinforced when the BLS publishes on Tuesday its preliminary estimation to review the employment level for the 12 months elapsed until March.
Based on the current data of the quarterly employment census and salaries, economists estimate that the level of employment could be reviewed up to 800,000 people. QCEW data is derived from employers reports to state unemployment insurance programs.
The president of the Fed, Jerome Powell, pointed out last month to a possible rate cut at the monetary policy meeting this month, recognizing the growing risks of the labor market, but also added that inflation remained a threat. The Fed has maintained its reference interest rate to one day in the range of 4.25% -4.50% since December.
