US sees weak jobs numbers in September
The rate of growth of US jobs was sluggish for the second month in a row, as questions are now being asked of the Fed and whether or not it will begin tapering its pandemic-induced monetary policies in November.
Firms in America, still the world’s largest economy, added 194,000 jobs in September, well below the 366,000 jobs posted the month before, as well as economists’ expectations of 500,000.
US.— Daniel Lacalle (@dlacalle_IA) October 8, 2021
Horrible jobs data. Disguising it as "labour shortages" is a joke.
Dreadful 194k gain (500k expected) in non-farm payrolls in September.
Labor force fell by 183k, still 3 million below pre-pandemic level.
11 months of stagnant labor participation rate, at 61.6%. pic.twitter.com/bfRcV1Ch3l
In better news the unemployment rate fell to 4.8% from 5.2%.
However, the overall picture is that whatever is stopping people from going back to work is persisting, which is not a good sign for the near-term outlook of the US economy.
The recovery of the US economy, therefore, could take longer than initially expected.
“This is an important reality-check moment in our road to recovery. We know that today there are 11 million open jobs and 8 million people looking for work,” said Becky Frankiewicz, president of ManpowerGroup North America.
9 million people without jobs and 11 million job openings.— David Webb (@davidwebbshow) September 30, 2021
Am I missing something?
“Employers across the country are getting increasingly creative when it comes to attracting and retaining skilled workers. It’s no longer enough that employers are adjusting wages; they’ve got to address health and well-being, safety, and flexibility too. We are seeing a long term change in the workforce. What people want from work and life has changed – as employers we need to make the workplace attractive enough to bring people back in,” said Frankiewicz.
Jerome Powell has previously stated that a “decent” jobs report would mean the central bank’s employment benchmark would be met, leading to the tapering of its $120bn asset purchasing. September’s job numbers may put a spanner in the works, although the Treasury yield curve is steepening in response to the figures, which suggests the Fed’s plan could remain intact.