HOUSTON, Sept. 16, 2020 /PRNewswire/ -- The U.S. labor market continued to improve in August, according to the latest economic analysis from the BBVA Research team.
Non-farm payrolls grew by 1.4 million and the unemployment rate dropped to 8.4 percent. In addition, the number of people on temporary layoff declined by more than 3 million, while the labor force participation edged up to nearly 62 percent.
The analysis, co-authored by BBVA Chief Economist Nathaniel Karp and Senior Economist Boyd Nash-Stacey, highlights the reverse in weekly hours declines from previous months, with all major industries except education and healthcare reporting a gain. Likewise, weekly earnings posted a solid 0.4 percent monthly gain, implying a 4.7 percent increase in the last 12 months.
The report imprints an upside bias to the research team's short-term forecasts and suggests that labor market conditions could normalize sooner than expected. However, given the magnitude of the fallout due to the pandemic, a full recovery to "maximum employment" is still likely to take time, while wage-inflation pressures will remain contained. Based on the Federal Reserve's updated Statement on Longer-Run Goals and Monetary Policy Strategy, this implication is that policy rates and the yield curve will remain low for a prolonged period.
BBVA USA's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA USA operates. Follow their work on Twitter @BBVAResearch and @BBVANews_USA.
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BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.
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SOURCE BBVA USA