U.S. employers in the month of September hired less workers than expected as supplemental unemployment benefits expired.
The unemployment rate fell to 4.8% as nonfarm payrolls increased by 194,000 workers in September.
Economist were expecting the addition of 500,000 new jobs and an unemployment rate of 5.1%.
The labor market is far from what we want as an economy but it is also far from total devastation. As COVID begins to go in our rear-view mirror, we can have optimism going forward on the labor market. President Biden commented on the September unemployment rate as “progress”.
The September report was the first since the $300 per week supplemental unemployment benefits that expired early September on the fifth. This is an influential factor that need to be thought about when interpreting Septembers statistics. Other factors that are influential in Septembers statistics are increasing vaccine mandates in workplaces and the Child Tax Credit which pays families up to $3,600 per child per year.
Noticeable job gains and losses were :
Leisure and Hospitality (+74,000)
Business Services (+60,000)
Retail Trade (+56,000)
Local Government Education (-144,000)
State Government Education (-17,000)
Optimism going forward is essential in this job market for the economy as progress is underway with more to come. Even as targets are missed, the economy’s job market is sloping upwards.
Article : https://www.foxbusiness.com/economy/jobs-nonfarm-payroll-report-september-2021.amp
4 comments:
I think many people were curious to see if the expiry of the economic stimulus was going to spur a wave of workers. It is still hard to say whether it had such a large impact or not. I think that although the economic job market is moving slowly, the upward progress is still great progress with the Delta variant still playing a part in the lives of workers.
The US economy is facing a huge shortage of labor. People enjoyed the unemployment benefits before. However, with the end of this program, people were pushed to find a job. Of course, every plan is a plan at first. It is easy to miss a target. Nevertheless, the job market is directed in positive slope
Companies and stores are witnessing a very hard period in time when it comes to staffing. This is due to the pandemic and people getting unemployment benefits. Employment is increasing but it is increasing very slowly. This is not good for many stores and companies as the holiday season is coming upon us which is a time of year many corporations rely on. This holiday season could make or break a lot of companies in my opinion.
I think one thing to take into consideration as well when viewing the latest unemployment numbers is the vaccine mandate that president Biden has put in place. I know most presidents goals are to keep unemployment as low as possible but in a market where there is already a labor shortage, does it hurt the market more implementing something such as this vaccine mandate which is forcing workers hand and some of them even quitting.
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