The job market weakened significantly in September, as new Labor Department data came in well below expectations, suggesting that the celebrated hiring surge reported the previous month was short-lived. The U.S. economy added 29,000 jobs in September, according to the Employment Situation Summary for September, published on Friday morning by the Bureau of Labor Statistics (BLS). That is less than a third of the 90,000 most analysts had penciled in, though predictions ranged from 180,000 to 35,000.
It also marks a steep drop compared to 133,000 in August, which was revised down from an originally reported 162,000. July's total was also revised down by 31,000, from 21,000 jobs to a negative -10,000, meaning the previous two months' hiring was 60,000 weaker than originally believed. Meanwhile, the unemployment rate inched up to 4.2 percent from 4.1 percent.
This compares with 4 percent when President Donald Trump returned to office and a recent peak of 4.5 percent in November. Alongside inflation readings, the BLS employment report is among the most closely watched gauges of economic conditions in the U.S.—with outsized increases or declines taken by some as a signal of progress or an endorsement of the administration’s domestic agenda.Last month’s report had nonfarm payrolls nearly triple consensus forecasts, and was held up by the White House as a major victory for the president’s economic stewardship. And as the last employment report before the midterm elections, Democrat campaigns may also draw on the weak reading as evidence that the economy, under the current administration, is faltering.
This is a developing story.
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