Huge disappointment for the U.S economy

 

The US economy added 142,000 jobs in September, less than forecast.

Economists had been expecting the economy to add 200,000 jobs. The unemployment rate held steady at 5.1%, a seven-year low.

Average hourly earnings were flat month-over-month in September, below expectations for 0.2% growth.

Ahead of this report, economists had noted that August and September nonfarm payrolls prints have been revised higher most of the time over the last decade. However, the August print was revised to 136,000 from 173,000 in Friday's report.

Economists had noted that the broad-based slowdown in the manufacturing sector, and in employment, would likely show up in this report. Manufacturing employment fell 9,000 in September, versus expectations for no change.

Mining employment also fell, as health care and information added more jobs, according to the Labor Department.

The labor force participation rate, which measures the share of Americans over 16 looking for work, fell to 62.4%, the lowest since 1977.

The year-over-year projection for hourly earnings growth, at +2.4%, was the most bullish forecast for wages in this economic cycle. Wages missed, at 2.2%.

Here's what Wall Street was expecting:

Nonfarm payrolls:+200,000

Unemployment rate: 5.1%

Average hourly earnings, month-over-month: +0.2%

Average hourly earnings, year-over-year: +2.4%

Average weekly hours worked: 34.6

 

 

 

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