Employment rose in September, and the unemployment rate was essentially unchanged at 4.7 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Nonfarm payroll employment rose by 110,000 following increases of 93,000 in July and 89,000 in August (as revised). In September, health care, food services, and professional and technical services continued to add jobs, while employment trended down in manufacturing and construction.Average hourly earnings rose by 7 cents, or 0.4 percent.
However, last months' loss was revised to a gain:
Payrolls grew by 110,000 after an 89,000 increase in August, the Labor Department said today in Washington. Revisions added 118,000 workers to payroll figures previously reported for July and August.
The devil's in the details, so let's see what the inside story of this number is.
Construction: -14,000
Manufacturing: -18,000
This shouldn't surprise anyone. The housing sector has been dropping like a stone for the last year. While commercial construction has helped to absorb the displaced workers, that will eventually only go so far. It looks like we are at the point.
As for manufacturing, the main issue here is the productivity increases we have seen over this expansion. Although exports continue to rise, this is occurring with fewer and fewer workers.
Education/health: 44,000
Leisure: 35,000
Government: 37,000
71.81% of the jobs created (44,000 + 35,000) were lower paying. In addition, when we take government out of the equation (which gives us 73,000 total), pretty much the majority of jobs created is lower paying.
Personally, I'm unimpressed by these numbers.
However, the upward revision to last month's numbers plus this months headline number will probably give the market some upward momentum.
