American Economy Adds Fewer Jobs
International Business Times
Published Oct 02, 2015 08:39AM ET
Updated Oct 02, 2015 09:00AM ET
American Economy Adds Fewer Jobs
By Jessica Menton -
This story was updated at 8:50 a.m. EDT
U.S. employers added 142,000 jobs in September and the unemployment rate remained at 5.1 percent, the Labor Department said Friday. The report was forecast to show employers adding 203,000 jobs last month and the unemployment rate was expected to hold steady at 5.1 percent, according to analysts polled by Thomson Reuters.
Amid the recent stock market turmoil and concerns of a slowing global economy, economists question whether the U.S. is strong enough to move away from crisis-level interest rates. In September, U.S. Federal Reserve left interest rates unchanged last month but left the door open to hiking rate as early as October. Nearly half (47%) of experts predict the central bank will raise rates in December, according to Bankrate.com.
Even so, many economists are still not seeing the accelerated growth that suggests the economy needs to slow -- or that businesses are experiencing wage pressure.
Wage growth -- which has been stagnant for years -- remained at 2.2 percent. The average hourly earnings for private-sector workers fell by 1 cents to $25.09. For most workers, however, real wages have fallen or remained flat for more than three decades.
Part of the reason real wage growth remains stagnant is because the recovery has come with stronger employment growth in low-wage industries, such as accommodation and food services, temporary help services, retail trade and long-term health care. These jobs account for nearly two-fifths of all new jobs added since the labor market bottomed out in February 2010, according to the Center for American Progress.
Somewhat troubling, though, the labor force participation rate continues to drop, which indicates more Americans giving up on finding work.
The number of Americans who have been out of work for 27 weeks or longer was essentially unchanged last month, at 2.1 million, constituting 26.6 percent of the unemployed. Meanwhile, many Americans who work part-time jobs want to work full time, and nearly two-thirds who are able to work have dropped out of the labor force, the highest proportion opting out of the workforce since the 1970s.
Get The News You Want
The labor-force participation rate remains at its lowest level since the late 1977s, a near 40-year low. That rate fell to 62.4 percent from the prior month, according to the report released Friday.
One thing to consider is the August payrolls report is notoriously revised higher. However, the change for August was revised from 173,000 to 136,000. Over the past 5 years or so the August payroll count tends to be revised up by 75,000 to 100,000 over time, John Canally, chief economic strategist at LPL Financial, said in a note.
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.