In September, the hiring of new labor in the United States slowed down significantly, to the lowest since the beginning of 2021. Market analysts attributed the figures to concerns about the dangerous Delta strain, which kept more workers from re-entering the labor market.
The number of new non-agricultural jobs in September was 194,000, against the 500,000 expected by analysts and well below the addition of 366,000 new jobs in August.
Hiring data for July and August were revised upwards: by 38,000 to 1.091 million and by 131,000 to 366,000, respectively.
The noticeable increase in jobs occurred in leisure and hotel companies (74 thousand), in professional and business services (60 thousand), in retail (56 thousand), as well as in transport and warehousing (47 thousand).
Employment in public education decreased by 161 thousand in a month due to a reduction in public schools, new jobs in the healthcare sector fell by 18 thousand.
In September, the unemployment rate in the US continued to decline to 4.8% against the forecast of 5.1% and 5.2% in August.
In September, the average hourly wage grew at a faster pace – growth compared to August was 0.6% and 4.6% compared to a year ago.
The fastest pace since February The increase in wages was because employers increased salaries and incentives amid a high shortage of staff and a growing number of vacancies ahead of the holiday season and increased demand.
For market participants, the employment report for September serves as a critical indicator of the timing of changes in the monetary policy of the Federal Reserve System.
Fed officials have previously suggested that the economy has already reached the central bank’s inflation targets. The only obstacle that has yet to is the labor market.
Last month, Fed Chairman Jerome Powell suggested that a” decent” employment report for September would be enough to indicate that the economy has improved enough that it no longer needs emergency support from the Fed’s monetary policy.
It won’t take a terrific, excellent, super-strong employment report,” Fed Chairman Jerome Powell said during his last press conference after the FOMC meeting in September. “I will need a good enough employment report to make me feel that this test has.
The Fed has already informed that it expects to begin reducing its asset purchase program during the crisis by the end of the year or slow down the pace of purchasing mortgage-backed securities and treasury bonds from the current level of $120 billion per month.
Officials have previously stated that, in their opinion, there is still not enough full employment in the labor market, which is a prerequisite for raising interest rates. Currently, economists’ forecasts say that the first Fed rate hike will likely occur in November 2022.