The U.S. government's Bureau of Labor Statistics (BLS) is reporting the economy added 336,000 jobs in September, far exceeding the 170,000 forecasted. On
thenationalpulse.com
"The U.S. government’s Bureau of Labor Statistics (BLS) is
reporting the economy added 336,000 jobs in September, far exceeding the 170,000 forecasted. On Wednesday the ADP National Employment Report
indicated private sector payroll increased by just 89,000 jobs month, well below their forecast of 150,000.
While on the surface the BLS data for September may look strong, there are some concerning indicators the U.S. job market is weakening. Last month’s job gains were driven entirely by an increase in part-time employment, with 151,000 jobs added. Full time employment actually decreased, shedding 22,000 jobs. Over the last three months, part-time employment has increased by nearly 1.2 million while full time employment has decreased by an estimated 700,000. Additionally, the labor force participation rate remained depressed at 62.8 percent.
The number of foreign born workers in the U.S. is at an
all-time high, making up 18.5 percent of the nation’s workforce. While the rate of employment for foreign workers has
recovered to pre-pandemic levels, the same cannot be said for native-born workers. Compounding the employment gap, BLS data shows since March of 2022 jobs have disproportionately gone to non-native workers.
Economist and President of Queens’ College, Cambridge (UK) Mohamed A. El-Erian
said he believes the jobs report is
“bad news for markets and for the Fed.” It is widely speculated the better-than-expected jobs numbers for September will increase pressure on Federal Reserve Bank chairman Jerome Powell to raise interest rates further before the end of the year. The Federal Reserve committee which sets interest rates is set to meet at the end of October."