U.S. Added 156000 Jobs in September and jobless rate rose to 5 %

U.S. Added 156000 Jobs in September and jobless rate rose to 5 %

The U.S. economy delivered modest job growth in September while wages picked up, suggesting a steady labour market as the Federal Reserve moves closer to raising interest rates and the campaign season enters its final stretch

Employment outside of farms grew by a seasonally adjusted 156000 jobs in September, the smallest gain since May, the Labour Department said October 7, 2016.

A broad array of industries added jobs last month. Professional and business services rose by 67000. Healthcare jobs increased by 33000. Food service jobs grew by 30000. Retailers added 22000. Meanwhile, employment in the mining sector, which includes oil and natural gas industries, was flat over the month after falling sharply over the past two years. Manufacturing employment fell by 13000.

The unemployment rate, derived from a separate survey of households, increased a tenth of a percentage point to 5.0 %. The rise actually reflected encouraging signs: The overall labour force grew quickly as discouraged Americans came off the side-lines and re-entered the job search.

Economists surveyed by The Wall Street Journal expected 170000 new jobs and a 4.9% unemployment rate.

The labour force—the number of adults who hold jobs or are actively looking for them—grew by 444000 last month, and by slightly more than 3 million over the past year. Even with the latest progress, millions of Americans are underemployed. The share of residents who are jobless, involuntarily stuck in part-time work or too discouraged to look for a job stood at 9.7 % last month, unchanged from August, but down from 10 % a year earlier.

The government also revised figures for prior months, though the overall outlook didn’t change much. The economy added 167000 jobs in August, up from the previously reported 151000 jobs. It created 252000 jobs in July, instead of 275000.

Meanwhile, growth in workers’ wages accelerated last month. Private-sector workers earned, on average, USD 25.79 an hour in September, up 6 cents, or 0.2 %, from a month earlier. The average paycheck grew 2.6 % over the past year.

www.wsj.com


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