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U.S. hiring slows to 29,000 jobs as earlier gains are revised lower
September hiring weakened, but a closer look at unemployment shows a smaller change than the rounded headline suggests.
U.S. employers added 29,000 jobs in September, while revisions erased 60,000 jobs from the previous two months, according to the Bureau of Labor Statistics. The October 2 report showed weak hiring alongside an unemployment rate of 4.2%.
The revisions changed the recent picture substantially. July’s initially reported gain of 21,000 became a loss of 10,000. August’s increase was lowered from 162,000 to 133,000. September’s modest gain therefore followed a weaker summer than previously estimated.
Average hourly earnings for private-sector workers rose five cents to $37.81, a monthly increase of 0.1%. Earnings were 3.0% above their level a year earlier. The average workweek held at 34.4 hours.
A small unemployment move behind the headline
The change from August’s rounded unemployment rate of 4.1% to September’s 4.2% needs context. Economists writing for the Federal Reserve Bank of St. Louis calculated that the underlying rate moved from 4.141% to 4.175%—an increase of roughly 0.03 percentage points.
Their analysis identified two forces moving in opposite directions: fewer unemployed people stopped searching and left the labor force, while more unemployed people found work. Remaining in the job search can keep someone counted as unemployed, even when it signals continued attachment to the labor market.
Labor-force participation also improved, reaching 61.8%, while the share of the population employed rose to 59.2%. The economists described overall conditions as historically healthy and broadly similar to recent months. That assessment was research commentary, rather than a Federal Reserve interest-rate announcement.
What the numbers establish
Taken together, the figures show that slow payroll growth and a relatively steady unemployment rate can coexist. The hiring total measures a different aspect of the labor market from the unemployment percentage; neither headline alone captures the full report.
For readers assessing the trend, the revised figures deserve attention alongside each new monthly number. The next scheduled employment report is November 6, when another round of data will help show whether September’s weak hiring persists.
Sources
- Bureau of Labor Statistics: September employment report, October 2
- St. Louis Fed economists: unemployment flows, October 2
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