Another Disappointing Monthly Jobs Report for September

Tom Cunningham, PhD
October 4, 2019
Read Time: min

This morning’s Employment Situation report from the Bureau of Labor Statistics for the month of September came in weaker than expected. There were 136,000 jobs added in September, falling short of the expectation of an added 145,000 jobs. The one bright spot was the headline unemployment rate (U3) which fell to 3.5% from 3.7%. The broadest measure of labor underutilization (U6) also fell from 7.2% to 6.9%. The last time U3 was this low was December 1969.

Employment strength was in health care, business and professional services, government, and transportation and warehousing. Of note, government employment (+22,000) was expected to be boosted by Census hiring of about 15,000, but that turned out to be negligible, with only 1,000 Census workers added. The other sectors were essentially unchanged. And the prior two month’s totals were revised up by a combined 45,000 jobs. Average hourly earnings were down slightly (-1 cent) and the year over year growth rate is not 2.9%.

It hasn’t been a great week for economic data releases, and today’s Employment Situation report continues that string of underwhelming news.

About the Author

Tom Cunningham, PhD

Tom joined the Federal Reserve Bank of Atlanta as an economist with the macropolicy group in 1985. He was promoted to senior economist in 1989 and to research officer and senior economist with responsibility for the regional group in 1992. Cunningham retired in 2015 after a 30 year career. He has recently joined the Metro Atlanta Chamber’s leadership team as chief economist. Cunningham’s deep experience covers all aspects of applied economics and real estate trends, and he is a specialist in macroeconomic policy and regional analysis. Throughout his career, he has interacted with multiple business leaders and companies in the Southeast, and has deep knowledge and expertise in areas such as real estate mortgage, mortgage finance, insurance, capital markets, transportation and government.

Full Bio

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