Payrolls increase by nearly 1.4 million as the unemployment rate tumbles

Nonfarm payrolls increased by 1.37 million in August and the unemployment rate tumbled to 8.4% as the U.S. economy continued to climb its way out of the pandemic downturn.

The unemployment rate was by far the lowest since the coronavirus shutdown in March, according to Labor Department figures released Friday. An alternative measure that includes discouraged workers and those holding part-time jobs for economic reasons also fell, down to 14.2% from 16.5% in July and 22.8% at the peak in April.

Economists surveyed by Dow Jones had been expecting growth of 1.32 million and the jobless rate to decline to 9.8% from 10.2% in July.

“It’s another great day for American jobs and American workers,” Vice President Mike Pence told. Pence added that the job growth and the single-digit unemployment rate is “real evidence that the American comeback is underway.”

Markets initially reacted positively to the news, but stocks turned lower and continued the aggressive sell-off from Thursday..