Many US jobs created in August pay low wages

Published: Monday | September 10, 2012 Comments 0

August was a weak month of hiring with just 96,000 new jobs created. While many industries added jobs, they largely came in low-paying fields.

For example, the hospitality industry which is mainly restaurants and hotels led all categories with 34,000 new jobs. Retailers added 6,100.

On the other hand, manufacturing jobs, which usually pay above-average wages, fell by 15,000. It was the biggest monthly drop in two years. The mining and logging industry, which includes oil and gas drilling, shed 2,000 jobs.

The economy typically creates more lower-paying jobs when unemployment is high, economists say. That's because those who are unemployed are desperate and willing to fill those positions.

Here's a look at the jobs added or lost in each major industry category:

 Industry   
 August 2012
 July 2012
 Construction 1,000 0
 Manufacturing 15,000 23,000
 Retai  6,100 1,800
 Transportation, warehousing 5,700  10,600
 Information (telecom, publishing)  3,000 8,000
 Financial services  7,000 2,000
 Professional services (legal, engineering, temp help)  28,000 47,000
 Education and health 22,000  38,000
 Hotels, restaurants, entertainment  34,000 28,000
 Government 7,000 21,000

AP

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