U.S. Job Growth Falls Well Short Of Expectations In September
02 October 2015 - 7:14PM
RTTF2
Employment in the U.S. increased by much less than anticipated
in the month of September, according to a report released by the
Labor Department on Friday.
The report said non-farm payroll employment rose by 142,000 jobs
in September, well below economist estimates for an increase of
about 203,000 jobs.
Job growth in July and August was also downwardly revised to
223,000 and 136,000, respectively, reflecting a net downward
revision of 59,000 jobs.
The Labor Department said notable job growth in the health care
and information sectors was partly offset by a decrease in mining
employment.
Meanwhile, the report said the unemployment rate held at a
seven-year low of 5.1 percent in September, matching economist
estimates.
The unemployment rate remained low due to a substantial 350,000
person drop in the labor force compared to a 236,000 person
decrease in the household employment survey.
The civilian labor force participation rate subsequently
declined to 62.4 percent in September, hitting its lowest level
since 1977.
Additionally, the Labor Department said average hourly employee
earnings dipped by a penny to $25.09 in September. Hourly earnings
were still up by 2.2 percent year-over-year.
Rob Carnell, chief international economist at ING, said, "For
once, these labor market numbers gave an unambiguous result. The
problem is that it was unambiguously negative."
"No rate hike this month then it seems," he added. "But it
raises doubts too about the probability of a December hike, unless
the Fed changes the basis upon which it decided policy rates."
The Federal Reserve is scheduled to announce its next monetary
policy decision following a two-day meeting ending on October
28th.
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