Healthcare, Leisure and Hospitality Lead Job Gains in August

The U.S. economy added 187,000 jobs in August, with the healthcare and the leisure and hospitality sectors leading the way.

The number of jobs added during the month was less than the average of 271,000 seen over the last 12 months, the Bureau of Labor Statistics (BLS) said in a Friday (Sept. 1) press release.

The slowdown in hiring is due in part to high interest rates, The Wall Street Journal (WSJ) reported Friday. During 2022, the average monthly job gain was 400,000.

“We have a slower economy, and that is weighing on job growth, but it’s still pretty strong,” Wilmington Trust Investment Advisors Chief Economist Luke Tilley told the WSJ.

The sectors continuing to trend upward in employment during August were healthcare, leisure and hospitality, social assistance and construction, according to the BLS release. The transportation and warehousing sector saw a decline.

Healthcare added 71,000 jobs, a figure that was similar to that recorded in the previous month. Ambulatory healthcare services accounted for 40,000 of those newly added jobs.

Leisure and hospitality added 40,000 jobs in August, lower than the monthly average of 61,000 recorded over the previous 12 months.

“Employment in the industry remains below its pre-pandemic February 2020 level by 290,000, or 1.7%,” BLS said in the release.

The sector adding the third-largest number of jobs during the month was social assistance. This category added 26,000 jobs, higher than the 12-month average of 22,000.

The fourth and final sector making notable gains during August was construction, which added 22,000 jobs during the month and has seen an average monthly increase of 17,000 over the last 12 months. Specialty trade contractors accounted for 11,000, or half, of the newly added jobs.

Transportation and warehousing was the one sector that saw a notable decline in August, reporting a loss of 34,000 jobs. Employment in truck transportation fell by 37,000 — largely due to a business closure — and couriers and messengers lost 9,000 jobs. These drops were partially offset by the addition of 3,000 jobs in air transportation.

“Employment in transportation and warehousing had shown little net change over the prior 12 months,” the BLS said in the press release.

Employment in other major industries showed little change during August.

Research group ADP reported Wednesday (Aug. 30) that American employers added fewer jobs than anticipated in August and that pay growth slowed.

“After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede,” ADP Chief Economist Nela Richardson said.