The US economy added jobs in September amid uncertainty about economic conditions, but the level of job creation remained relatively low, adding to signs of a weakening labor market.
The Labor Office reported this to employers on Thursday 119,000 jobs added in September, a figure that exceeded the estimate of economists polled by LSEG.
The unemployment rate rose to 4.4% in September, exceeding economists’ expectations.
Originally scheduled for release on October 3, the September jobs report was delayed a month and a half due to the 43-day government shutdown, which laid off Bureau of Labor Statistics (BLS) employees responsible for compiling the report.
Job gains in the previous two months were both revised in the September report, with July job creation revised down by 7,000, from a gain of 79,000 to 72,000; while employment creation for August was revised down by 26,000, from a gain of 22,000 to a loss of 4,000.
All told, employment in July and August combined was 33,000 lower than previously reported.
US job growth missed expectations in August amid economic uncertainty
Private payrolls added 97,000 jobs in September, exceeding the LSEG estimate of 62,000.
Government payrolls rose by 22,000 jobs in September after falling by the same amount in August. State governments added 16,000 jobs and local governments added 9,000 jobs, while the federal government cut 3,000 jobs in September.
The Bureau of Labor Statistics noted that federal employment has fallen by 97,000 jobs since peaking in January. It also noted that federal workers on paid leave or receiving ongoing severance pay are counted as employees in the agency’s survey.
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The manufacturing sector lost 6,000 jobs in September, a smaller decline than the 8,000 loss estimated by LSEG economists. Overall, the manufacturing sector is down 94,000 jobs on a seasonally adjusted basis from a year ago.
Healthcare companies added 43,000 jobs in September, slightly higher than last year’s 12-month average of 42,000, led by gains in outpatient healthcare (+23,000) and hospitals (+16,000).
Food services and beverage services added 37,000 jobs in September, while the social assistance sector added 14,000 jobs this month.
The transportation and warehousing sector lost 25,000 jobs in September, driven by losses in the warehousing and warehousing sector (-11,000) and couriers and messengers (-7,000).
The labor force participation rate was 62.4% in September and had changed little over the past month and year. The employment-to-population ratio is also little changed in September, at 59.7% – although it has fallen by 0.4 percentage points over the past year.
The number of long-term unemployed, defined as unemployed for 27 weeks or more, changed little in September: 1.8 million. The long-term unemployed accounted for 23.6% of all unemployed people this month.
The number of employees who worked part-time for economic reasons changed little: 4.6 million in September. These individuals would have preferred full-time employment, but worked part-time because their hours were reduced or they could not find full-time employment.
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This is a development story. Check back later for updates.
