No US jobs added in August results in stock falls

The US economy added no jobs in August, according to the US Department of Labor. The August number was worse than expected. The predicted figure was about 70,000 new jobs. The unemployment rate remained unchanged from July at 9.1%. The previous two months figures were also revised. In July 85,000 jobs were created, down from the previous 117,000. In June the figure now reads 20,000 down from 46,000. Virginie Maisonneuve, head of global equities at Schroders: “Companies that are overall doing OK are hesitating to hire and invest further.” US government bonds rallied after the figures were released. However, global stock markets had been lower all day Friday ahead of the numbers and they fell further after the publication. It is the first time since 1945 that there has been a zero payrolls figure. It follows 10 consecutive months of job additions.

Category: Business / US economic news / Jobs & markets

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