Payrolls Growth in U.S. Misses Big for a Second Straight Month

0
34
18237500 - businessman hand pointing to investment as concept
imageEconomic Indicators1 hour ago (Oct 08, 2021 13:44)

(Bloomberg) — The U.S. added fewer jobs than forecast for a second month in September, signaling weakness in the labor market recovery and complicating a potential decision by the Federal Reserve to begin scaling back monetary support before year end.

Nonfarm payrolls increased 194,000 last month after an upwardly revised 366,000 gain in August, a Labor Department report showed Friday. The unemployment rate fell to 4.8%, while average hourly earnings jumped.

The median estimate in a Bloomberg survey of economists was for a 500,000 rise in September payrolls.

Consecutive months of sluggish job growth indicate a tug of war between employers — starved for workers to meet demand — and candidates have been slow to return to the workforce. Nonetheless, school reopenings and the end of expanded federal unemployment benefits should lead to a pickup in hiring in coming months at a time when companies are boosting pay.

The jobs figures risk not satisfying the Federal Reserve’s “substantial further progress” criteria for labor market improvement, indicating the central bank could delay its plan to begin tapering asset purchases by year-end.

Chair Jerome Powell said after last month’s policy meeting that “a reasonably good employment report” for September would be needed meet that test.

Vaccine mandates put into place by employers and governors in states including California and New York in recent weeks could also be contributing to churn in the labor market and adding to hiring challenges.

Payrolls Growth in U.S. Misses Big for a Second Straight Month

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here