Friday, October 3, 2014

Job Growth Picked Up Speed and Unemployment Drops to 5.9%

Total nonfarm payroll employment rose by 248,000 jobs in September, an improvement from the disappointing jobs report the month prior. Moreover, September’s report positively revises July’s and August’s headline numbers up by a collective 69,000 jobs.

The unemployment rate declined to 5.9%, however 315,000 people left the labor force in September, resulting in the labor force participation rate dropping to 62.7%. The participation rate is a new post-recession low. The number of long term unemployed, defined as those who have been out of work for over 27 weeks, declined by 9,000 people to 3.0 million — accounting for almost 32% of all unemployed individuals.

The private sector, particularly the service industry, continues to drive job growth. The service sector added 207,000 in September, the fastest pace in three months. Gains in the service sector were led by professional and business services, which grew by 81,000 jobs.

The goods producing sector continues to edge back up, growing by 29,000 jobs. However, it is still well below the pace of 63,000 seen in July. Government employment increased by 12,000, over double the growth seen the prior month.

Read the BLS release.

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