The U.S. economy added 136,000 jobs in September, indicating sustained — yet slowing — growth amid increasing concerns of an economic downturn.
In its monthly jobs report released Friday, the Bureau of Labor Statistics (BLS) also announced that unemployment in the U.S. declined to 3.5 percent — its lowest point in 50 years. The rate fell by 0.2 percent from the month prior, bringing the number of Americans without a job to 5.8 million.
“Today’s jobs report is consistent with our outlook of a gradually slowing growth path,” said Doug Duncan, the chief economist at Fannie Mae. “However, some of the underlying details paint a mixed picture.”
The total jobs added in September missed expectations, which analysts predicted would be roughly 145,000 jobs. Average monthly employment growth so far this year is now 161,000, which remains well below 223,000 average monthly gains in 2018, the BLS reported.
The industries with the most employment gains were health care and professional and business services, adding 39,000 and 34,000 jobs respectively. Other sectors, such as mining, construction, financial activities, and manufacturing, showed negligible change last month.
Average hourly wages across the economy decreased 1 cent in September, reversing a growth trend that saw an 11 cent hike in August and a 9 cent increase in July and June. Over the past year, the BLS said, average hourly wages have grown by 2.9 percent.
The September jobs report comes on the heels of multiple disappointing indicators released in recent days that point to an economic slowdown worldwide.
The Institute for Supply Management (ISM), a non-profit trade association, reported this week that the U.S. service industry fell to its lowest point in three years and that the manufacturing sector contracted for the second straight month.
“After the very weak ISM data, there was this anticipation built up that [the jobs report] could be much more negative than what we got,” said Matthew Luzzetti, the chief U.S. economist at Deutsche Bank. “Even though it missed expectations, I don't think it was as bad as feared.”
On Tuesday, moreover, the World Trade Organization warned that enduring trade tensions and weakening economies worldwide are causing a significant decline in global commerce. The instability led the Geneva-based organization to cut its forecast for trade volume growth to just 1.2 percent in 2019, more than 50 percent lower than an earlier estimate.
Friday’s jobs report also comes ahead of a Federal Reserve meeting later this month. The U.S. central bank has already slashed rates twice in recent months to spur growth and sustain expansion.
“The report does little to clarify the divergent views on the Federal Reserve about whether the economy is slowing or not,” Duncan said. “But we continue to believe the Fed will cut rates this quarter due to trade uncertainties and weak manufacturing data.”
President Trump lauded September’s unemployment figure, saying Friday morning that it is a “tremendous number.”
There are now over 1,000 plant-based restaurants in the U.S. It's clear that people are hungry for vegan alternatives at restaurants nationwide. However, when it comes to pizza, vegan options don't have the best reputation. NUMU Food Group is looking to change that with its brand new vegan mozzarella. Mike Pytlinski, CEO of NUMU Food Group, joins Cheddar News to discuss.
Tattoo artist Katrina "Kat Tat" Jackson, famous for starring in the VH1 hit series "Black Ink Crew: Chicago," is also the first Black woman to own a tattoo shop in Beverly Hills. She joined Cheddar News to discuss her trailblazing work, the stigma BIPOC tattoo artists face in the industry, and the way the space has changed for artists of color since her start. "In the beginning, I remember walking into a tattoo shop just like, hey, I wanna learn, I wanna be a tattoo artist and kind of just being laughed at, not taken seriously," she said. "Even with the tattoo conventions, a lot of African American tattoo artists were almost scared to go to conventions because it's not a welcoming environment."
Jack Miller, Head of Trading at Baird, joined Closing Bell to break down how the Securities and Exchange Commission's proposals would change the landscape for individual investors, as they face stiff opposition from brokerages like Robinhood.
Robotics automation technology company Symbotic made its market debut on the Nasdaq via a SPAC merger with SVF Investment Corp. 3, a special purpose acquisition company sponsored by an affiliate of SoftBank Investment Advisers. Symbotic rang the Opening Bell at the Nasdaq to celebrate the occasion this morning. Its debut on Wall Street comes amid an urgent need for logistics solutions, as it aims to reimagine supply chains with its A.I.-powered robotic and software platform. Tom Earnst, CFO of Symbotic, and Vikas Parekh, managing partner at Softbank Investment Advisors, join Cheddar News' Closing Bell to discuss.
Michelle Castillo joined Closing Bell to break down Elon Musk's announcement to SpaceX employees that the Starlink internet business might not see itself as an IPO until 2025, Twitter planning to hand over the user data he requested as a condition of the acquisition, and Warren Buffet-backed Chinese EV company BYD stating it will be supplying batteries to Tesla "very soon."
At the age of 65, Judy Katz, who ran her own public relations firm for years, was looking for a change. After retirement, she started a brand-new business as an author and ghostwriter of books. Judy Katz joins Jamie Hopkins to discuss finding a new beginning as a ghostwriter and living life to the fullest post-retirement.
Catching you up with today's market check with the mortgage demand plummeting to a 22-year low, Walmart heir Rob Walton getting set to buy the Denver Broncos for $4.56 billion, and talks continuing over Jetblue’s attempted purchase of Spirit headlines.
