Final jobs report before Election Day shows US employers added 661,000 workers in September

Arena chairman and CEO Michael Rosenbaum weighs in on the fastest-growing jobs in America and how the coronavirus pandemic is changing the job market. The U.S. economy added 661,000 jobs in September, suggesting the labor market’s recovery from the coronavirus pandemic is beginning to plateau amid fading government relief money and a gradually […]

The U.S. economy added 661,000 jobs in September, suggesting the labor market’s recovery from the coronavirus pandemic is beginning to plateau amid fading government relief money and a gradually widening virus caseload.

The Labor Department’s payroll report released Friday is the last before the Nov. 3 presidential election, in which the coronavirus pandemic and the subsequent economic recession have been major issues.

It showed the unemployment rate unexpectedly fell to 7.9% from 8.4%.

STILL NEED YOUR CORONAVIRUS STIMULUS CHECK? KEY DEADLINES TO KNOW

Economists surveyed by Refinitiv expected the report to show that unemployment dropped to 8.2% and the economy added 850,000 jobs.

It’s well below the combined 7.5 million jobs added in May and June before hiring cooled in July, with growth of 1.9 million positions, and in August, with 1.4 million. There are still roughly 10.7 million more out-of-work Americans than there were in February before the pandemic hit, according to the report.

“These data are consistent with a labor market that is rebounding, albeit at a slower pace than a few months ago, which should be enough to support consumers and consumption,” said Sameer Samana, senior global market strategist at Wells Fargo. “While risks remain, such as election- and COVID-19-related uncertainty, we believe investors should continue to remain fully invested.”

Markets, already lower after the news that President Trump and his wife contracted COVID-19, slid following the report, with all three major indexes down in the early afternoon.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 28038.58 +355.77 +1.29%
I:COMP NASDAQ COMPOSITE INDEX 11276.071084 +201.05 +1.82%
SP500 S&P 500 3394.46 +46.02 +1.37%

Leisure and hospitality, one of the industries hit hardest by the pandemic, once again led in terms of job growth, with gains of 318,000. Retail added 142,000 workers, and health care and social assistance payrolls rose by 108,000.

Professional and business services increased by 89,000 and the transportation and warehousing sector grew by 74,000. Manufacturing added 66,000 and financial activities rose by 37,000.

Several large employers, however, have recently warned of, or made, job cuts.

Disney laid off 28,000 workers, mostly at its two U.S. theme parks. United and American Airlines sent furlough notices to 32,000 employees on Wednesday after federal COVID aid expired, and Royal Dutch Shell said it planned to cut between 7,000 and 9,000 jobs by the end of 2022.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The report comes as a $300-a-week federal unemployment boost that President Trump issued at the beginning of August begins to expire in some states.

Economists have urged Congress to overcome a month-long stalemate and pass another round of emergency relief for workers and businesses reeling from the pandemic and have warned that without additional stimulus, the recovery could stall.

Source Article

Next Post

Added capacity hasn’t meant more business yet in Round Rock, Pflugerville - News - Austin American-Statesman

Restaurant and retail business owners in Pfugerville and Round Rock say they have yet to witness an uptick in customers since being allowed to let more in. “We are still getting the same decent traffic during our lunch and dinner shifts, and of course it’s not nearly as what it […]