Unemployment Rate Rises in Disappointing September Jobs Report
Even though the summer is over, the jobs market continues to be on a low simmer.
Last month, employers added a less than expected 156,000 jobs to their payrolls. The projection was for the economy to add 177,000 jobs in September.
The unemployment rate rose to 5.0% for the month.
The number is another sign that the economy seven years after the recession continues to extend its slow expansion, long after many recoveries have cooled off. Earlier this week, a manufacturing index showed that the closely watched sector rebounded slightly from a dip in August.
Average hourly earnings also picked up slightly in the month to an increase of 0.2% in September. That was up from an increase of just 0.1% the month before.
What’s more, the jobs gains were all from the private sector. The private sector added just 167,000 jobs in September. The government sector lost 11,000 jobs in September.
The number also will put the Federal Reserve, which is still looking to raise interest rates this year, in a tough spot. Following the jobs number, investors are more likely to not see a Fed rate increase until at least December, if at all this year.