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.”
The telecom giant AT&T is looking to make online learning more fun for students by engaging them with content from its partners at Warner Bros. Discovery. Mylayna Albright, the assistant vice president of corporate social responsibility for AT&T, joined Cheddar to discuss how the company came about with the free digital e-learning program that it's calling The Achievery. "We knew that once students went home as a result of the pandemic, it was very difficult for them, and we knew from research, specifically through Morning Consult, that parents and teachers realized that probably 80 percent of students felt that they would be more engaged if they had a more entertaining approach," she said.
Stocks closed lower Monday as investors eye earnings, inflation, rising rates, and more. The 10-year Treasury yield reached its highest level since late 2018, leaving investors worried about rising rates and concerned about a potential recession. Earnings season is also kicking into high gear this week as big tech names, airlines, and other companies report their latest quarterly results. Steve Sosnick, Chief Investment Strategist at Interactive Brokers, joins Closing Bell to discuss today's close, how the Federal Reserve will balance inflation versus recession risk, how the war in Ukraine could continue to impact markets, and more.
Jared Walczak, Vice President of State Projects for the Tax Foundation, joins Cheddar News' Closing Bell, where he explains why a tax exemption for groceries does not benefit lower-income families as much as one would expect. He also makes the argument that a rate cut would actually be more beneficial.
Sourceful is an all-in-one platform for sourcing sustainable materials. The startup recently raised $20 million in a Series A round led by Index Ventures. Through its platform, Sourceful helps businesses find and design more eco-friendly packaging and reduce the carbon footprint of their supply chains. Wing Chan, Co-Founder and CEO of Sourceful, joined Cheddar News' Closing Bell to discuss.
If you did not attend Coachella and spent the weekend scrolling through Tiktok or Instagram, you probably saw a lot influencers comparing Revolve Festival to Fyre Fest.
Content creator Lars Gummer joins Cheddar News to discuss his experience at the festival.
Britt Reichborn-Kjennerud, Section Manager for E-Mobility & Demonstrations for Electric Vehicles, Con Edison and
Joe Morreale, Section Manager of EV Demo Projects and Managed Charging & E-Mobility & Demonstrations, Con Edison, join Cheddar News' Ken Buffa from the New York Auto Show to discuss Con Edison's Clean Energy Commitment and the goal to power New York with 100% clean energy through initiatives like the 'SmartCharge' and 'PowerReady' Programs.
Arthur Madrid, CEO of The Sandbox, and Steven Kolb, CEO of CFDA, join Cheddar News to discuss their partnership focused around fashion in the metaverse.
Ever walk into a CVS to pick up some gum, maybe some Chapstick, only to get hit with a ridiculously long receipt? It’s no secret that most CVS purchases come with these comically long receipts. But what might surprise you is that these long receipts are part of a marketing plan that's paying off big time for CVS.
