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Payrolls Growth in U.S. Misses Big for a Second Straight Month By Bloomberg

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U.S. Payroll Growth A Second Month of Missing Big

(Bloomberg). — In September’s second month, the U.S. created fewer jobs that was forecast. This signals weakness in the recovery of the labor market and could complicate a Federal Reserve decision to reduce monetary support prior year-end.

According to a Labor Department report, the number of people who were employed in September increased 194,000 compared with a slightly revised 3666,000 increase in August. While the average hourly wage rose, it fell to 4.8%.

According to a Bloomberg Survey of Economists, the median expectation was that September payrolls would rise by 500,000.

Inconsistent months of slow job growth, employers are struggling to hire workers and applicants have had a hard time returning to work. However, the reopening of schools and the ending federal expansions in unemployment benefits will lead to an increase in hiring during a period when employers are increasing pay.

The jobs figures risk not satisfying the Federal Reserve’s “substantial further progress” criteria for labor market improvement, indicating the central bank could delay its plan to begin tapering asset purchases by year-end.

Chair Jerome Powell said after last month’s policy meeting that “a reasonably good employment report” for September would be needed meet that test.

Employers and governors have recently put in place vaccine mandates in New York and California. This could be contributing to the churning of the labor market as well as increasing hiring difficulties.

 

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