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US economy added only 194,000 jobs in September

US employment growth fell to its slowest pace of the year in September as Delta variants and persistent labor shortages curtailed companies’ employment capacity.

Economy Added 194,000 jobs in SeptemberThe Ministry of Labor said on Friday that it was the lowest profit since December 2020, down from the upwardly revised 366,000 jobs added in August. The unemployment rate fell from 5.2% last month to 4.8%. The rate declined primarily as many workers left the workforce.

The numbers add evidence that concerns about viruses and global supply constraints continue to curb economic recovery. The biggest driver of the sluggish salary increase last month was primarily a decline in public sector work in schools. Employment in the private sector increased by 317,000 in September, with a slight increase in some industries.

Spread of this summer Delta variantCovid-19’s particularly contagious stocks trick job seekers into expediting job expansion in September, despite many companies desperately seeking employment, according to economists and business leaders. It may have interfered.

Ansilver, head of the local chamber of commerce in Reno, Nevada, said: Touring, health care, you name it. No person found. Everyone immediately says, “Wow, the economy is recovering.” Well, it can’t be without humans. “

Employers seem to be eager for employment across the country.there were Almost 11 million unfilled jobs At the end of July, the Ministry of Labor figures show a record high for more jobs than the number of unemployed. In the United States, employment in August is about 5 million less than in February 2020.

Employers are increasingly retaining the workers they have as temporary dismissals across the United States decline.Applying for the first unemployed claim Last week decreased by 38,000 The Ministry of Labor said Thursday that it would reach 326,000, close to the pandemic’s lows.

The unemployment rate remains higher than the pre-pandemic 3.5%. However, other measures, primarily wage growth, suggest a tight labor market. According to data from the Ministry of Labor, the average hourly wage of private workers in September rose 4.6% year-on-year, and employers raised wages to compete for a shrinking pool of workers.

At two restaurants at Great Basin Brewing Co. in Reno, Nevada, managers have raised cooks’ wages by 30% since January, said co-founder Tom Young, who recently sold the company to retail investors. A lot of people have returned to the restaurant this year, but due to the lack of kitchen staff, Young says that instead of having the usual 180 regular customers seated at each store, only up to 150 people will be seated. Stated. The company aims to hire 10 people. “There aren’t enough workers to get around here,” Young said.

The labor force participation rate, the percentage of workers who are working or actively looking for work, remained almost unchanged from 63.3% in February 2020 before the pandemic to 61.6% in September.

According to an August survey by the job search website Indeed, the number one reason people are avoiding the workforce is fear of catching the coronavirus. Other factors include parents staying home to care for their children, while some schools remain closed this year.

Economists point out at least two reasons why they believe employment growth has recovered last month. One is that many school districts may have reopened and hired workers such as cafeteria workers and bus drivers. The resumption may have allowed parents, especially mothers, to return to work. Economists say more workers could return to the workforce as more cases of Covid-19 have recently declined and vaccination coverage has risen.

“If the reduction in the number of previous cases is some indication, the diminished pandemic prominence will lead to more people returning to the workforce,” said Indeed economist Nick Bunker. ..

Write to Josh Mitchell at joshua.mitchell@wsj.com

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US economy added only 194,000 jobs in September

Source link US economy added only 194,000 jobs in September

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