After 3 consecutive months of improvement, August’s unemployment rate was flat at 6.4%, in line with consensus expectations…

… thanks to a 0.1% decrease in the participation rate, which offset a 42K decline in employment (mostly full-time jobs).

The sequential job loss in August was broad-based, although on a Y/Y basis employment was largely unchanged in the sectors with black-shaded bars below.

Adding to the somewhat disappointing report was wage growth, which slowed to 2% Y/Y and came in below inflation.

Meanwhile, among the unemployed, the long-term share inched slightly higher to 24.0% (unemployed for 27+ weeks), remaining above the pre-pandemic average of 17.1%.

More encouraging, after 3 consecutive months of lengthening, the average duration of unemployment improved to 23.0 weeks from 23.6 weeks.

Given the overall mixed results, as well as the US renewing its trade war with Canada, we’ll be watching the upcoming data closely to see the impact on our economy.

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