The unemployment rate is the lowest it's been since March, and some perspective on Thursday's rough day in the market. Here's how the headlines could affect your money:
The major indexes took a turn Thursday after the tech sector suffered its worst losses since March, dragging down the broader market. The S&P fell 3.51% Thursday for its worst day since June, and as of close was down 1.51% for the week.
Stocks continued their decline Friday morning. Just remember that market gains and losses should be viewed through a longer lens. Even with Thursday's losses, the benchmark index still closed above its pre-pandemic high and was at a level investors last saw in mid-August.
The August jobs report is in, and it's better than analysts expected. The unemployment rate tumbled from July's 10.2% down to 8.4% — the lowest it's been since March.
Nonfarm payrolls increased by 1.37 million. Government hiring accounted for a quarter of those new jobs, and of those, the majority were Census roles. Retail hiring was also on the rise.
More than half, 60%, of people now classify themselves as "savers" rather than "spenders," up from 54% last year, according to a new CNBC + Acorns Invest in You survey. One easy way to shift to a saver mindset? Set up automatic contributions to a savings account from each paycheck, to "pay yourself first."
Video by David Fang
Nonfarm payrolls are what the Bureau of Labor Statistics are counting when they calculate new job and unemployment figures for the monthly jobs report. According to the BLS, nonfarm jobs covers all roles except "the economic activities of the following: general government, private households, nonprofit organizations serving individuals, and farms." Economists monitor nonfarm payrolls as a measure of the country's economic health.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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