US economy adds 119,000 jobs in September as unemployment rate rises

Despite a sluggish job market and rising unemployment rate, the United States’ job growth accelerated in September.

According to the Bureau of Labor Statistics (BLS) report released on Thursday, nonfarm payrolls increased by 119, 000 jobs after a downwardly revised 4, 000 decline in August.

The unemployment rate increased from 4.3 percent in August to 4.4 percent.

43, 000 jobs were created in the healthcare industry in September, which was the highest level. Following, the sectors of food and beverage services saw a rise of 37, 000 jobs, and that of social assistance, which increased by 14, 000.

Other industries, such as business and professional services, saw little change, including those in construction, wholesale trade, retail, and retail.

3, 000 jobs were lost in the federal workforce, which is the largest employer in the country since the beginning of the year. In September, the industries of transportation and warehousing, which are heavily affected by tariffs, experienced declines and the loss of 25, 000 jobs.

Average wages grew by 0.2 percent, or 9 cents, to $36.67.

Hindernis caused by the government shutdown

The US government shutdown caused the release of the September jobs report on October 3. However, that plan was postponed. The first Friday of each month is typically when the jobs report is released. The US Labor Department was unable to gather the data needed to determine the October unemployment rate because of the 43-day shutdown.

The November employment report, which is scheduled to be released on December 16, will include nonfarm payrolls for the month of October.

According to the BLS, about 911, 000 jobs were created in the 12 months through March than previously believed, which is when the economic data blackout begins. The supply of skilled labor has declined due to a decline in the number of migrant workers entering the US on the lookout for work, a trend that began in the final year of former US President Joe Biden’s presidency and grew more quickly under President Donald Trump’s administration.

The underlying labor market is weak, leaving working Americans with shrinking opportunities and growing insecurity, according to today’s delayed report. According to Alex Jacquez, head of policy for the economic think tank the Groundwork Collaborative, the Trump economy is reducing its output month after month, creating fewer jobs, more instability, and fewer opportunities for families to advance.

According to economists, the economy currently only needs to create between 30 and 50 000 jobs per month to maintain a steady decline in the working-age population, down from about 150 000 in 2024.

Behind the growth that is stalling

The rising use of artificial intelligence is also lowering labor demand, with the majority of jobs being held in entry-level positions in white collar positions and excluding recent college graduates from the workforce. According to economists, AI is accelerating economic growth among those without jobs.

Others attributed the Trump administration’s trade policy to stifling small businesses’ ability to hire.

Justices questioned Trump’s legality as a result of earlier hearings before the US Supreme Court regarding the 1977 International Emergency Economic Powers Act’s authority to impose tariffs.

Some industries and sectors are losing jobs despite the economy remaining stable. Some economists believed that the Federal Reserve’s December 9 to 10 policy meeting on interest rate decisions could still be affected by the employment report from September.

Source: Aljazeera