The August employment report shows the economy continuing with its very sluggish pace. Although the unemployment rate fell it was due more to a contracting labor force rather than expanding employment. The household survey showed a drop of some 119,000 while the payroll or headline data increased only 96,000 — private rose 103,000 while government employment fell 7,000.
Moreover, the workweek was unchanged so the index of aggregate hours worked only rose 0.1%.
Average hourly earnings was unchanged and the year over year change remained at last months record
low. Average weekly earnings for nonsupervisory workers only rose 1.6% over the last years while for all private workers the gain was 2%