Tuesday, October 22, 2013

Economy Added 148,000 Jobs as Unemployment Rate Dropped to 7.2%

The economy added just 148,000 jobs in September, below expectations. The unemployment rate dropped to 7.2%, and since the labor force participation rate remained constant at 63.2%, it means the job gains were real, instead of individuals leaving the labor force.

September’s report also includes revisions to the previous months. The change in total nonfarm payroll employment for July was revised from 104,000 to 89,000 jobs, and the change for August was revised from 169,000 to 193,000 jobs. With these revisions, employment gains in July and August combined were 9,000 more than previously reported.

The majority of the slowing seen in September was due to weaker growth in the services industries, specifically the education and health services and leisure and hospitality sectors.

Job creation in the construction sector increased 20,000 following a 2,000 increase the previous month.

Next month’s job report is likely to show less growth due to the government shutdown in October. The weaker than expected report may postpone when the FOMC decides to start tapering.

Read the BLS report.

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