U.S. unemployment rate unchanged at 3.9% in August

President Donald Trump speaks at a rally at the Rimrock Auto Arena in Billings Mont. Thursday Sept. 6 2018

USA job growth accelerated in August and wages notched their largest annual increase in more than nine years, strengthening views that the economy was so far weathering the Trump administration's escalating trade war with China. Goldman Sachs reckons the measurement glitch reduced last month's job count by at least 40,000.

In July, the USA economy added 157,000 jobs, fewer than forecast, while the unemployment rate fell to 3.9% after hitting 4% in June.

At 8:30 a.m. ET, the August jobs report will be released by the Bureau of Labor Statistics and this report is expected to show August was another strong month for the USA labor market.

Stock markets opened slightly lower on Friday, with the higher-than-expected wage growth creating some fear of additional interest-rate hikes from the Federal Reserve.

Another measure showed diminishing labor-market slack.

"It looks like we're finally seeing that acceleration in wage growth that we've been waiting for", said Gus Faucher, chief economist at PNC Financial Services.

The White House, meanwhile, argued this week that a different measurement approach yields a rosier picture, which it says will only get brighter as tax cuts translate into business investment and improvements in worker productivity.

Revisions subtracted a total of 50,000 jobs from payrolls in the previous two months, according to the figures, resulting in a three-month average of 185,000.

Yet most economists said they saw the pay increase as an encouraging sign that the low unemployment rate is compelling more employers to raise pay in order to compete successfully for workers.

The job gains for August were roughly in line with the average for the last 12 months, which is 196,000. Sales of existing homes dropped in July for a fourth straight month. August is also commonly revised, meaning that this month's number will likely change as well.

Non-farm payrolls surged by 201,000 jobs last month, boosted by hiring at construction sites, wholesalers and professional and business services, the Labour Department said yesterday.

Hiring can be volatile in August as teachers and other employees return to work after summer lulls. But a broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, fell one-tenth of a percentage point to 7.4 per cent, the lowest level since April 2001.

The economy is still looking for more workers as employers are continuously reporting that they are having trouble finding enough workers to fill all open positions. Both numbers reflect a very healthy job market.

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