U.S. Employment in Leisure and Hospitality Continued to Trend Up in August (+40,000)

U.S. Employment in Leisure and Hospitality Continued to Trend Up in August (+40,000)

U.S. Unemployment Rate Up to 3.8% for August

THE EMPLOYMENT SITUATION -- AUGUST 2023

Total nonfarm payroll employment increased by 187,000 in August, and the unemployment rate rose to
3.8 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up
in health care, leisure and hospitality, social assistance, and construction. Employment in
transportation and warehousing declined.

Household Survey Data

The unemployment rate rose by 0.3 percentage point to 3.8 percent in August, and the number of
unemployed persons increased by 514,000 to 6.4 million. Both measures are little different from
a year earlier, when the unemployment rate was 3.7 percent and the number of unemployed persons
was 6.0 million. (See table A-1.)

Among the major worker groups, the unemployment rates for adult men (3.7 percent), Whites (3.4
percent), and Asians (3.1 percent) rose in August. The jobless rates for adult women (3.2 percent),
teenagers (12.2 percent), Blacks (5.3 percent), and Hispanics (4.9 percent) showed little change
over the month. (See tables A-1, A-2, and A-3.)

Among the unemployed, the number of job losers and persons who completed temporary jobs increased
by 294,000 to 2.9 million in August, offsetting a decrease of 280,000 in July. In August, the
number of new entrants edged up to 597,000. (New entrants are unemployed persons with no previous
work experience.) (See table A-11.)

Both the number of persons unemployed less than 5 weeks, at 2.2 million, and the number of long-
term unemployed (those jobless for 27 weeks or more), at 1.3 million, edged up in August. The
long-term unemployed accounted for 20.3 percent of all unemployed persons. (See table A-12.)

In August, the labor force participation rate rose by 0.2 percentage point to 62.8 percent, after
being flat since March. The employment-population ratio was unchanged over the month at 60.4
percent. (See table A-1.)

The number of persons employed part time for economic reasons, at 4.2 million, changed little in
August. These individuals, who would have preferred full-time employment, were working part time
because their hours had been reduced or they were unable to find full-time jobs. (See table A-8.)

In August, the number of persons not in the labor force who currently want a job was 5.4 million,
little changed from the prior month. These individuals were not counted as unemployed because they
were not actively looking for work during the 4 weeks preceding the survey or were unavailable to
take a job. (See table A-1.)

Among those not in the labor force who wanted a job, the number of persons marginally attached to
the labor force was little changed at 1.5 million in August. These individuals wanted and were
available for work and had looked for a job sometime in the prior 12 months but had not looked for
work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the
marginally attached who believed that no jobs were available for them, also changed little over
the month at 386,000. (See Summary table A.)

Establishment Survey Data

Total nonfarm payroll employment increased by 187,000 in August, less than the average monthly
gain of 271,000 over the prior 12 months. In August, employment continued to trend up in health
care, leisure and hospitality, social assistance, and construction. Employment in transportation
and warehousing declined. (See table B-1.)

In August, health care added 71,000 jobs, following a gain of similar magnitude in the prior month.
Over the month, job growth continued in ambulatory health care services (+40,000), nursing and
residential care facilities (+17,000), and hospitals (+15,000).

Employment in leisure and hospitality continued to trend up in August (+40,000). The industry had
gained an average of 61,000 jobs per month over the prior 12 months. Employment in the industry
remains below its pre-pandemic February 2020 level by 290,000, or 1.7 percent.

Employment in social assistance increased by 26,000 in August, in line with the prior 12-month
average gain (+22,000). Over the month, job growth continued in individual and family services
(+21,000).

Construction employment continued to trend up in August (+22,000), in line with the average monthly
gain over the prior 12 months (+17,000). Within the industry, employment continued to trend up over
the month in specialty trade contractors (+11,000) and in heavy and civil engineering construction
(+7,000).

Transportation and warehousing lost 34,000 jobs in August. Employment in truck transportation fell
sharply (-37,000), largely reflecting a business closure. Couriers and messengers lost 9,000 jobs,
while air transportation added 3,000 jobs. Employment in transportation and warehousing had shown
little net change over the prior 12 months.

Employment in professional and business services changed little in August (+19,000) and has shown
essentially no net change since May. Professional, scientific, and technical services employment
continued to trend up over the month (+21,000). In contrast, employment in temporary help services
continued to trend down (-19,000) and has declined by 242,000 since its peak in March 2022.

Information employment changed little in August (-15,000). Within the industry, employment in
motion picture and sound recording industries decreased by 17,000, reflecting strike activity. Job
losses continued in telecommunications (-4,000).

Employment showed little change over the month in other major industries, including mining,
quarrying, and oil and gas extraction; manufacturing; wholesale trade; retail trade; financial
activities; other services; and government.

In August, average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents,
or 0.2 percent, to $33.82. Over the past 12 months, average hourly earnings have increased by 4.3
percent. In August, average hourly earnings of private-sector production and nonsupervisory
employees rose by 6 cents, or 0.2 percent, to $29.00. (See tables B-3 and B-8.)

The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.4
hours in August. In manufacturing, the average workweek was 40.1 hours for the fifth month in a
row, and overtime edged down by 0.1 hour to 3.0 hours. The average workweek for production and
nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.8 hours. (See
tables B-2 and B-7.)

The change in total nonfarm payroll employment for June was revised down by 80,000, from +185,000
to +105,000, and the change for July was revised down by 30,000, from +187,000 to +157,000. With
these revisions, employment in June and July combined is 110,000 lower than previously reported.
(Monthly revisions result from additional reports received from businesses and government agencies
since the last published estimates and from the recalculation of seasonal factors.)

Employment Situation Summary Table A. Household data, seasonally adjusted

Employment Situation Summary Table B. Establishment data, seasonally adjusted

Employment Situation Frequently Asked Questions

Employment Situation Technical Note

Table A-1. Employment status of the civilian population by sex and age

Table A-2. Employment status of the civilian population by race, sex, and age

Table A-3. Employment status of the Hispanic or Latino population by sex and age

Table A-4. Employment status of the civilian population 25 years and over by educational attainment

Table A-5. Employment status of the civilian population 18 years and over by veteran status, period of service, and sex, not seasonally adjusted

Table A-6. Employment status of the civilian population by sex, age, and disability status, not seasonally adjusted

Table A-7. Employment status of the civilian population by nativity and sex, not seasonally adjusted

Table A-8. Employed persons by class of worker and part-time status