Another month, another dismal employment report from the Delta wave. In September, US companies created fewer jobs than expected. The new update shows that that the economy was still on the ropes as the autumn season started.
In a CNBC report, the Bureau of Labor Statistics said that the nation added just 194,000 nonfarm payrolls last month. Bloomberg polled analysts and found that this figure fell well short of the 500,000-payroll forecast. At the same time, August payroll increase was revised from 235,000 to 366,000.
Unemployment Slows Down Again
The report indicates that hiring slowed again last month. Although the figure represents the ninth consecutive month of employment creation, it also indicates a decrease from the August figures.
Business Insider said the household survey, used to calculate the unemployment rate, revealed much more positive news than the headline nonfarm payroll figures. The government’s survey period concluded in mid-September. In the survey, they found that number of jobless Americans had fallen by a healthy 710,000. The progress left about 7.7 million people unemployed.
Employment increased by 526,000 people, according to the study. As a result of this combination, the unemployment rate dropped to 4.8 percent from 5.2 percent, well surpassing the consensus estimate of 5.1 percent.
Another encouraging sign: between August and September, the average hourly salary rose by 19 cents, or 0.6 percent, to $30.85. This was more than the average estimate of a 0.4 percent increase. As companies struggle to rehire due to the exceptional labor shortage, the average pay has become more important in recent months. While some companies have waited for more Americans to return to work, others have increased wages to entice employees and fill positions fast.
In general, the Friday data indicates a labor market that is slowing down on its way to complete recovery as the Delta wave reaches its apex. On September 7, daily case numbers reached an all-time high, then began to decrease in the second part of the month. Because the survey period for the employment report ended halfway through the month, it missed the weeks when instances started to decline.
Suppose the downward trend in new cases continues. In that case, employment gains in October might be much greater. That’s because the rate of recovery has closely tracked the virus’s spread. As certain economic restraints were restored and Americans’ expectations for recovery cratered, Business Insider said the Delta wave is generally considered to have slowed employment growth in August.
According to the University of Michigan’s Surveys of Consumers, consumer mood improved just marginally in September.
September Jobs: Delta-Era Hiring Slowdown
Beyond the wide job increases and the unemployment rate, the Friday data provides further information. It shows where employment picked up, where industries lagged, whether more Americans joined the workforce, and how the epidemic is still wreaking havoc on the job economy.
The leisure and hospitality industry added the most employment in September, with 74,000 new employees. In the spring and summer, that sector accounted for a large portion of the employment rebound. Still, it stopped in August.
According to the data, local government education lost 144,200 positions in August, making it the month’s largest loss. The algorithm used to adjust the figures for seasonal trends in hiring and layoffs expects a large spike in hiring at the beginning of the school year. But the fluctuation of remote and hybrid learning during the past two years threw those usual patterns into disarray in 2021. On a non-seasonally adjusted basis, the public education sector gained over 600,000 jobs. The data is still lesser than the seasonal adjustment anticipated.
The U-6 unemployment rate fell to 8.5 percent from 8.8 percent. The said unemployment category includes just marginally employed Americans and those who work part-time for financial reasons.
Finally, the labor-force participation rate fell slightly from 61.7 percent in August to 61.6 percent in September. The figures indicate that some Americans had given up searching for employment during the month. More than 20 states terminated the federal benefit early, leaving claimants with less support during the Delta spike. After that, the federal government’s supplement to unemployment insurance lapsed countrywide in September. The $300-per-week increase expired on September 6. Since then, UI assistance submissions have remained high. It implied that the expiry did nothing to stimulate job seekers.