A report on disappointing jobs would have been worse without census employees



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Without the temporary hiring of enumerators, the disappointing employment report for the month of August would have been even worse.

The federal government hired 25,000 temporary workers in anticipation of the 2020 census in August, which would give a big gain to all jobs. The non-farm payroll increased by 130,000 last month, 150,000 less than Wall Street estimates.

Employment in the federal government increased by 28,000 in August, the Department of Labor said Friday. Private sector employment rose by only 96,000, its lowest pace since February.

The weakness came mainly from the retail sector, which recorded a net drop of 11,100 workers in August alone. Trade, transport and utilities also lost 11,000 jobs, and mining and logging lost 5,000 jobs.

"The lower than expected job gains make sense when we look at the ISM and Markit figures of yesterday on employment and that we understand just how companies respond to slowing growth and business concerns, "said Peter Boockvar, chief investment officer at Bleakley Advisory Group. "Companies have taken time to hire until visibility becomes less cloudy, it is only cautious."

The ISM manufacturing sector gauge in the United States showed that the sector contracted in August, its first decline since 2016.

The labor market remains generally in good condition. The unemployment rate remained stable at 3.7% as expected and wage growth remained strong, with average hourly earnings increasing by 0.4% for the month and 3.2% over the year.

In addition to the many jobs created before the 2020 population count, professional and business services also added 37,000 jobs. Health care represented 24,000 people and financial services increased by 15,000.

CNBC's Jeff Cox contributed to the stories.

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