US non-farm payrolls increased by 1.4 million in August as recovery slows

US non-farm payrolls increased by 1.4 million in August as the government’s coronavirus (COVID-19) aid ran out and companies brought back furloughed workers at a slower pace. August’s employment numbers, which beat estimates for 1.32 million new jobs, still underscored a slowdown in the recovery: the number of new jobs fell from 1.8 million in July and 4.8 million in June.  That leaves payrolls more than 11 million jobs below their pre-pandemic levels. Meanwhile, the unemployment rate fell to 8.4%, down from 10.2% last month, according to the Labor Department’s monthly report. The report on Friday provides some of the first clear data on the state of the economy as emergency federal spending winds down, including a $600 weekly supplement to unemployment benefits that helped keep many households afloat early in the pandemic.  The slowdown in job creation could add pressure on the White House and Congress to restart stalled negotiations for another fiscal package, and will likely become political ammunition for both Democrats and Republicans with just two months to go until the presidential election. After the report’s release, Wall Street was set to fall, with Dow futures recently trading down 15 points to 28,336. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham