The Labor Department reported that nonfarm payrolls came in well below expectations last month, up just 148,000 in September as compared to the consensus estimate of 185,000, and the unemployment rate fell from 7.3 percent to 7.2 percent as fewer Americans were counted as unemployed, but more workers left the labor force than found jobs.
July payrolls were revised down, from 104,000 to 89,000, while August data was revised up, from 169,000 to 193,000, resulting in a net gain of 9,000 for prior months in a continuing trend of the U.S. economy creating barely enough jobs to keep up with population growth.
The jobless rate fell one-tenth to its lowest level since late-2008 and, as has been the case in recent months, more people left the labor force than found jobs, 136,000 vs. 133,000. Those officially counted as “unemployed” fell by 61,000.
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Returning to the establishment survey, September job gains were paced by the trade, transportation, and utilities category with nearly one-third of the overall gain of 60,000 coming from the transit and ground passenger transportation sub-category. The retail trade sub-category accounted for another one-third of the job gains.
Professional and business services added 32,000 positions, most of these temporary, and the hiring of teachers at the state level accounted for all the net job gains of 22,000 in government positions.
Health care accounted for fewer new jobs than normal, just 13,700, and the leisure and hospitality group saw a surprise decline of 13,000, most of which was due to fewer jobs at restaurants and bars.
