The labor market trend continues downward. Although jobs increased by 263,000 in September (down 52,000 from the previous month), this was the smallest monthly increase since April 2021. In August, 315,000 more paychecks were signed compared to July.
The labor market was affected, in part, by job declines in public administration, which lost up to 25,000 jobs. This drop occurred mostly at the local and state level, whose jobs are more seasonal. Other sectors that lost the most jobs were financial activities and transportation (8,000 vacancies).
The September data also failed to beat Dow Jones estimates, which estimated an increase of 275,000 new payrolls. According to the Department of Labor's report, so far this year, the labor market has shown a progressive decline (except in February and July), reflecting the poor economic situation in the United States.
By sector, leisure and hospitality benefited the most, with an increase of 83,000 jobs. Healthcare added 60,000 new jobs, professional and business services increased by 46,000 and manufacturing contributed 22,000. Construction rose by 19,000 and wholesale trade by 11,000.
Lower unemployment due to lower labor force
Forecasts indicated that the unemployment rate would be 3.7% and, according to official data, it remained at 3.5%. In other words, it beat expectations, although this was the effect of the 57,000 drop in the labor force.
On the other hand, earnings in September also fell short of experts' expectations. Average hourly wages increased by 5% compared to last year, although they have been on a slow and progressive decline since May, when they stood at 5.6%. Despite this increase in salaries, inflation continues at much higher levels (8.3%) and hinders the cost of living.
