US Labor Market Cools As September Job Growth Slows
The US economy saw an increase of 119,000 jobs in September, suggesting a deceleration in the pace of hiring. Even with progress in some areas, the increase in unemployment signals growing strain on both employees and companies.
The Bureau of Labor Statistics’ latest data indicated a slowdown in the job market compared to its earlier peaks. The consensus among economists is that the nation is facing a slowdown in job creation, a consequence of both economic instability and changes in the global landscape.
Healthcare And Food Services Drive Job Creation Gains
Healthcare topped the list of industries, adding 43,000 new jobs in September. Food and beverage services weren’t far behind, adding another 37,000 positions to the expanding national workforce.
The social support industry saw growth as well, with 14,000 new positions created throughout that timeframe. These advances served to lessen the impact of widespread declines in government and transportation jobs across the country.
Federal And Transport Sectors Report Notable Declines
In September, the federal workforce saw a decrease of 3,000 jobs. Since the start of the year, government employment has shrunk, with nearly 97,000 positions eliminated across several agencies.
Transportation and warehousing sectors also experienced a decline, shedding 25,000 jobs as trade tensions persisted. Economists pointed to persistent tariffs and a dip in logistics demand as primary factors behind the job losses.
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Unemployment Rate Rises As Wages Show Marginal Growth
The unemployment rate ticked up to 4.4% in September, a little rise from August’s 4.3%. Analysts see this as a sign that the job market is slowing down, even if wages are still rising, but not by much.
Hourly wages were up by 0.2%, resulting in an average pay of $36.67. Even still, when you factor in inflation, income growth isn’t keeping pace with the rising cost of living throughout the country.
Government Shutdown Delays Reporting And Data Collection
The September employment report was held up, a casualty of a 43-day federal shutdown that threw a wrench into the data collection process. The Labor Department has announced that the October data will be made public in December.
As a result, this delay caused a short data blackout, which prevented policymakers from reviewing the most recent economic performance. Economists cautioned that these kinds of disturbances erode trust and make it harder to decide on interest rates.
Economists Cite Trade Policies And AI As Key Challenges
Several factors have been recognized as contributing to the slower increase of jobs. President Donald Trump’s trade policies have sown seeds of doubt, which in turn have made small businesses hesitant to hire new employees or invest in their operations.
Simultaneously, the rise of artificial intelligence is pushing out entry-level employees, particularly in office jobs. Economists have a term for this: “jobless growth.” It’s when productivity climbs while the number of jobs stays flat.
Fed Eyes Employment Data Ahead Of December Meeting
The Federal Reserve will weigh the most recent job figures when it deliberates on interest rate policy in December. As expansion cools, the discussion heats up again: how to juggle rising prices with keeping people employed.
The minutes from the Federal Reserve’s October meeting revealed a hesitance among officials over any immediate cuts to interest rates. The latest labor figures are expected to shape the Federal Reserve’s messaging as it approaches its upcoming policy meeting.
