US adds 142,000 jobs in September, fewer than expected
Economists had forecast 200,000 in a month; unemployment holds at 5.1 percent; report could cause Fed to hold rate hike
A disappointing employment report has emerged from the U.S. Labor Department on Friday, as non-farm payrolls added only 142,000 jobs in September, well below economists’ consensus forecast of 200,000.
The unemployment rate held at 5.1 percent.
Stock exchanges in Turkey, the U.S. and Europe all fell on the news, which is likely to delay the projected interest rate increase by the Federal Reserve.
In September, the unemployment rate held at 5.1 percent, and the number of unemployed persons (7.9 million) changed little, the report said. Over the year, the unemployment rate and the number of unemployed persons were down by 0.8 percentage point and 1.3 million, respectively.
Healthcare added 34,000 jobs in September, in line with the average increase of 38,000 jobs per month over the prior 12 months. Employment in information increased by 12,000 in September and has increased by 44,000 over the year.
Employment in professional and business services continued to trend up in September (+31,000), the report said.
However, employment in mining continued to decline in September (-10,000), with losses concentrated in support activities for mining (-7,000). Mining employment declined by 102,000 since reaching a peak in December 2014 as the price of oil fell.
The Labor Department statement also said that the July report was revised from 245,000 jobs added to 223,000, and the change for August was revised from 173,000 added to 136,000.
With these revisions, employment gains in July and August combined were 59,000 less than previously reported, the Labor Department said.
"This proves [Federal Reserve Chair Janet] Yellen right: it's too early to hike interest rates," commented TheStreet analyst Jim Cramer in a note on Friday. "Don't expect the rate hike in October," he warned.
In her last press conference on monetary policy on Sept. 17, Yellen said that the improving U.S. employment picture provided a strong impetus for the first interest rate increase since 2006.
However, she said that economic progress in the U.S. was not sufficient to warrant a rate hike yet. With the employment progress in the U.S. falling off, a rate hike in October becomes much less likely.
