Employers added 29,000 jobs last month, and the unemployment rate rose to 4.2 percent, federal data showed on Friday. Growth in average hourly earnings fell to 3 percent annually in September, well below inflation, marking the slowest pace since the pandemic depths. Employment gains for July and August were revised down by a combined 60,000 jobs.
Claudia Sahm, former Federal Reserve analyst and chief economist at New Century Advisors, described the market as stable but soft, noting it matters "who you are in the labor market that matters." The labor market's resilience contrasts with climbing prices and low consumer sentiment. Successive shocks including the pandemic, inflation, and geopolitical tensions have impacted hiring. Diesel prices hit record highs, straining supply chains.
A shift in worker supply, including baby boomer retirements and immigration restrictions, has contributed to the current dynamics. U.S. employers and workers have navigated pandemic, inflation, and wars pushing prices higher. The economy has digested volatility, but the labor market presents challenges for job seekers and recent graduates despite an overall resilient backdrop.
Source: New York Times Business · Summarized by HeadlinesBriefing