US Labor Market Hits a Speed Bump: Job Growth Slows Amid Rising Unemployment Rate
The latest jobs report from the US Bureau of Labor Statistics revealed a mixed bag for American workers. While nonfarm payrolls grew by 119,000 jobs in September, the unemployment rate rose to 4.4%, indicating that the labor market is still experiencing headwinds.
Despite this, certain sectors saw significant gains, with healthcare employment surging by 43,000 jobs and food and beverage services adding 37,000. Social assistance also experienced a boost of 14,000 new hires. However, construction, wholesale trade, retail services, and professional business services remained relatively stagnant.
On the other hand, some sectors are shedding jobs, including transportation and warehousing, which lost 25,000 positions. The federal workforce also saw a decline of 3,000 employees since the beginning of the year, as well as a reduction in migrant workers coming to the US for employment.
Average wages grew by just 0.2 percent, or 9 cents, to $36.67, indicating that wage gains are not keeping pace with job growth. The slowing labor market is also being attributed to rising artificial intelligence usage, which is eroding demand for entry-level positions and affecting recent college graduates.
Additionally, trade policy under the Trump administration has been cited as a factor in stalling economic growth. The ongoing government shutdown also contributed to the delay in releasing the jobs report, which was initially scheduled for October 3 but was pushed back due to data collection challenges.
The implications of this report will be closely watched by policymakers, particularly the Federal Reserve, which will not have access to November's employment numbers until December 16. The Fed is set to meet on December 9-10, and many policymakers cautioned that lowering interest rates further could risk undermining efforts to quell inflation.
As economist Alex Jacquez noted in a statement, "The underlying labor market remains weak... Month after month, the Trump economy is producing fewer jobs, more instability, and fewer pathways for families trying to get ahead." The slowdown in job growth highlights ongoing challenges facing American workers.
The latest jobs report from the US Bureau of Labor Statistics revealed a mixed bag for American workers. While nonfarm payrolls grew by 119,000 jobs in September, the unemployment rate rose to 4.4%, indicating that the labor market is still experiencing headwinds.
Despite this, certain sectors saw significant gains, with healthcare employment surging by 43,000 jobs and food and beverage services adding 37,000. Social assistance also experienced a boost of 14,000 new hires. However, construction, wholesale trade, retail services, and professional business services remained relatively stagnant.
On the other hand, some sectors are shedding jobs, including transportation and warehousing, which lost 25,000 positions. The federal workforce also saw a decline of 3,000 employees since the beginning of the year, as well as a reduction in migrant workers coming to the US for employment.
Average wages grew by just 0.2 percent, or 9 cents, to $36.67, indicating that wage gains are not keeping pace with job growth. The slowing labor market is also being attributed to rising artificial intelligence usage, which is eroding demand for entry-level positions and affecting recent college graduates.
Additionally, trade policy under the Trump administration has been cited as a factor in stalling economic growth. The ongoing government shutdown also contributed to the delay in releasing the jobs report, which was initially scheduled for October 3 but was pushed back due to data collection challenges.
The implications of this report will be closely watched by policymakers, particularly the Federal Reserve, which will not have access to November's employment numbers until December 16. The Fed is set to meet on December 9-10, and many policymakers cautioned that lowering interest rates further could risk undermining efforts to quell inflation.
As economist Alex Jacquez noted in a statement, "The underlying labor market remains weak... Month after month, the Trump economy is producing fewer jobs, more instability, and fewer pathways for families trying to get ahead." The slowdown in job growth highlights ongoing challenges facing American workers.