As election season heats up, the U.S. labor market continues to be a hot topic for both presidential candidates. But how much of what they say is actually true? Let’s take a look at the most recent jobs report to get an idea of where the economy really stands today.
Here’s the News You Can Use From Today’s Release:
- Job creation was lower than expected. While the U.S. created 156,000 jobs in September, and while economists had predicted higher gains of 176,000 jobs, this is no reason to panic.
According to The New York Times:
“As an election season marked by fears about jobs and wages enters the final stretch, the American economy looks more resilient than some campaign rhetoric might suggest.”
According to Business Insider:
“The increase in nonfarm payrolls was lower than expected. But it remained strong enough to indicate that the job market is still robust, with employers unable to find all the skilled workers they want to hire.”
According to MSNBC:
“Over the last 12 months, the overall economy has created 2.44 million new jobs, which is a pretty healthy number. What’s more, September was the 72nd consecutive month of positive job growth, which is the longest on record.”
- Labor force participation is up. The labor participation rate ticked up from 62.8 percent to 62.9 percent. What’s the significance of this number?
According to CNS News:
“At a recent news conference, Federal Reserve Chair Janet Yellen said the labor force participation rate has increased on balance since late last year, which ’shows a substantial number of people are being attracted into the labor market.’”
According to the Wall Street Journal:
“Workforce participation peaked in 2000 and is expected to decline further in the coming years due to demographic and other forces. But the measure picked up over the past year, a sign the tightening labor market is drawing would-be workers off the sidelines. That’s helped pin the unemployment rate in place despite continued employment gains.”
- Wages increased, too. Average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $25.79 in September, while average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $21.68.
According to CNN Money:
“Pay checks are improving at a faster pace for Americans too. Wages grew 2.6% in September compared to a year ago. That’s not stellar wage growth, which is usually above 3%. But it’s better than the 2% growth — or less — seen for years during the recovery.”
According to the Wall Street Journal:
“After years of wage growth stuck around 2%, pay raises began to move higher in 2015 and into this year—outpacing the long-sluggish pace of price inflation.”
Looking at the overall economy over the past 12 months, the U.S. has created a healthy 2.44 million new jobs. What’s more: September was the 72nd consecutive month of positive job growth — the longest on record. We’re not out of the woods yet, however: The New York Times notes that “despite robust hiring in late 2015 and during much of 2016, notable pockets of economic weakness remain, more than seven years after the start of the current recovery.”
Don’t miss the jobs report buzz! Follow us on Twitter @CBforEmployers and live tweet with us starting at 8:30 a.m. EST on the first Friday of every month as part of #JobsFriday.
