US Economy Adds Lower-Than-Expected 142000 Jobs In September, Unemployment … – International Business Times
This story was updated at 9:15 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 cent 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.
Jobs in low-wage industries—such as accommodation and food services, temporary help services, retail trade, and long-term health care, account for nearly two-fifths of all new jobs added since the labor market bottomed out in February 2010. Center for American Progress’ Economic Policy
Another issue the U.S. economy has faced throughout the recovery is fiscal drag, including less public investment, says William Spriggs, chief economist at the AFL-CIO. “We never had the true rebound during this recovery compared with prior recoveries,” Spriggs said.
Congress passed a budget extension this month to avert a partial government shutdown, but could face similar issues again in December.
The last government shutdown in the fall of 2013 shaved three-tenths of a percent off real gross domestic product growth …Read More