US Job Growth Slips to 142,000 in August

It was a disappointing month as economists expected 230,000 jobs to be added to payroll.
4:12 | 09/05/14

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Transcript for US Job Growth Slips to 142,000 in August
Okay. It is Friday September 5 -- financial markets up and running in today's big number 142000. That. It's how many new jobs threat to the payrolls in America for the month of August and is far as big numbers go. Well economists are saying 140000. Probably does not big enough. Everyone I'm Dan Butler in New York. Rick -- from Yahoo! finance has been crunching unemployment -- employment numbers. All morning joining us now deet tails Rick Good Friday morning to you again so the news from the Bureau of Labor Statistics August not such a hot month right. Yeah economists were expecting something like 230000. Jobs. And then you -- there were some downward revisions to the prior -- -- all told. Came in about a 100000 jobs lower than economists were looking for so. That's obviously bad news in -- thing with these employment numbers they do get changed once they get more data. You know everybody says don't. Draw conclusions just based on one number but it nonetheless this is disappointing we thought we were seeing pretty strong strong job growth and this is kind of a David and that trend change unemployment rate -- well right conference six point 2% -- six point 1%. -- that particular trouble spots in this. Well there was no strong growth and and job growth in any sector. And we -- a decline than any number of new jobs in construction. Obviously we'd like to see that going the other way. That tell you something about a housing recovery that just can't really seem to get off the ground and -- manufacturing was. Flat that -- I had something to do with auto makers. Who change their patterns a little bit in terms of when they shut down factories they did not shut them down and that much in July. Which made the August numbers look worse so that's that's the kind of anomaly that we'll get ironed out over time. But there is really no strong job growth anywhere -- we can't really -- to any sector and say -- they're really doing great just kind of block day all around Dan. Would let me ask you this and Rick we really can't talk about job numbers and Lester -- talk about interest rates in the Federal Reserve so what effect we think these numbers are gonna have on Janet Yellen. Well we are getting close to the. -- when the Fed is going to officially change its interest rate policy and instead of the super low interest rates short term rates near zero. The Fed is at some point before -- going to say hey we think now is a time to start raising interest rates that would be assigned. Of confidence that the economy is getting star's gonna stay that way the Fed -- to do that basically just to tighten up on the money supply to head off inflation. Had this jobs report in a strong winds similar to the ones from June July let's say. That might there's a chance that might have been enough to convince the Fed OK now -- the time to do this they have. One of their policy setting meetings in two weeks or so that could have been the point at which they said okay we -- now convinced labor market -- a pretty good. That this report makes this makes that less likely so. You know the Fed looks -- a lot of different indicators not just a number of new jobs the unemployment rate but we are continuing to see what -- -- Janet -- calls slack. In a labor force and as long -- she -- that -- not tightening. She's likely to keep keep interest rates at near zero where they are so basically. This suggests this will just be we'll see a continuation of the Fed policy for possibly a couple more months at a minimum. All right so lastly Rick -- try to -- that an optimistic note one month doesn't necessarily make a trend and I. Well if you look at job growth for the whole year were averaging more than two we're still averaging more than 200000 new jobs per. -- that's a good number and we could end we probably will end the year above 200000 on average and when we get closer to fifty. And dare I say 300000 new jobs for months. That's the point at which you actually have a pretty healthy economy so we're not that far it's just taking way longer -- to get where we want a big. All right we'll have to wait and see when we will -- actually get their regular from Yahoo! finance on this Friday Rick have a great weekend it did -- it. Pushing -- -- keep up with the latest headlines right here on abcnews.com. You know watching the big number I'm Dan Kessler anymore.

This transcript has been automatically generated and may not be 100% accurate.

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