Further, monthly job growth still exceeds U.S. population growth, economists said. Estimates on this"neutral" pace vary. Bunker pegs it around 70,000 to 100,000 jobs a month; Terrazas puts it around 150,000.The unemployment rate jumped to 3.8% in August from 3.5% in July, the U.S. Labor Department said Friday.
Instead, the jump is largely attributable to an increase in the number of people looking for work, economists said. More people are therefore entering the labor force — which gives the appearance of rising unemployment. The rate of labor force participation in August reached its highest level since the start of the Covid-19 pandemic, according to Labor Department data.
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