September jobs weaker than expected; unemployment rises to 5 percent

A Bureau of Labor Statistics report released Friday revealed the economy produced 156,000 September jobs, a number lower than the outlook of over 170,000 economists had originally predicted.

On the vanguard of the increase of jobs was the health care industry:  33,000 jobs were added in the sector and was followed by an additional 24,000 jobs in ambulatory health care; hospitals witnessed 7,000 additional employees.  In sum, the health care sector has added 445,000 jobs in 2016.

Additionally, food services and retail added 30,000 and 22,000 jobs in September.

In contrast, the sectors including construction, manufacturing, wholesale trade, transportation and warehousing, information, financial activities, mining and government remained flat from August totals.

Accompanying the unremarkable September report were revisions to July and August jobs assessments in which July’s numbers were revised down from +275,000 to +252,000; August revisions went up from +151,000 to +167,000.

Worse teen, unemployment remained a bleak 15.7 percent, a statistic economists attribute to rising minimum-wage laws.

Although subject to varying interpretation, the unemployment rate rose to five percent from August and the number of unemployed persons stood at 7.9 million.  Virtually unchanged from the previous month, economists attribute the rise in the unemployment rate to a number of unemployed persons who had long abandoned seeking work returning to the labor market.

Alternatively speaking, the 5.0 percent unemployment rate and the number of unemployed, 7.9 million, also remained essentially unchanged from September 2015, effectively indicating little movement and dashing hopes for the unemployed seeking brighter economic news.

 

[CNBC] [Photo courtesy usnews.com]