Payrolls Drop by 4,000 in August

Washington, DC, September 7, 2007—Payrolls in August fell by 4,000, according to the Labor Department, for their first decline in four years. The unemployment rate held steady at 4.6%.

Economists had expected an increase of 115,000 jobs.

Also, payrolls in June and July were revised lower by a cumulative 71,000. The separate household survey showed a decline in employment of 316,000 in August, and a 24,000 drop in unemployment. But the labor force fell by 340,000, so the unemployment rate held steady.

Jobs in the manufacturing sector were off by 46,000. during the month. Service sector jobs increased by 60,000, retail jobs rose by 13,000.

Jobs in the government sector declined by 28, 000.

The average hourly wage increased $0.05 or 0.3% in August to $17.50, in line. Hourly wages are up 3.9% in the past year.

The average workweek held steady at 33.8 hours. Total hours worked in the economy held steady. Average hours worked in manufacturing also held steady, while factory overtime fell six minutes to 4.1 hours.