U.S. employers added 148,000 jobs in September, falling short of the 180,000 expected, and the unemployment rate dropped to 7.2 percent, the Department of Labor reported Tuesday.þþAugust numbers were revised upward, suggesting the economy enjoyed rising momentum before an acrimonious budget fight in Washington took some of the wind out of its sails.þþThe data, usually issued on the first Friday of the month, was delayed by the government shutdown. The jobs report for October will be released on Friday, Nov. 8, one week later than scheduled.þþIt will take some weeks if not months before analysts can fully assess the economic impact of the 16-day government shutdown, but most economists think the temporary closure of operations and furloughs of about 800,000 employees will shave a half percentage point of economic growth in the fourth quarter.þþEconomists estimate the 16-day government shutdown shaved as much as 0.6 percentage point off annualized fourth-quarter gross domestic product, through reduced government output and damage to both consumer and business confidence.þþOfficials at the Federal Reserve are likely to hold off any decision on scaling back the U.S. central bank's bond buying until the extent of the economic damage from the budget fight is clearer.þþFed officials will meet next week to discuss monetary policy, on Oct. 29-30. They surprised markets last month by sticking to their $85 billion per month bond-buying pace, saying they wanted to see more evidence of a strong recovery.þþNow, many economists think the Fed will hold off on scaling back economic stimulus until next year.þþEconomists fear that lawmakers will engage in another bruising round early next year when Congress must agree on a budget to fund the government and once again raise the nation's borrowing limit.þþThe pattern of employment gains in September was mixed last month, with government payrolls increasing 22,000 jobs after rising 32,000 in August.þþThe leisure and hospitality industry shed the most jobs since December 2009. There was a small bounce in information sector payrolls, which dropped in August as the motion picture industry shed workers.þþConstruction payrolls increased 20,000, which could ease fears of a leveling off in home building.þþManufacturing sector added only 2,000 jobs, while retail employment increased 20,800.þþOther details of the employment report were mildly encouraging, with average hourly earnings increased three cents in September. The length of the average workweek held steady at 34.5 hours.
Source: Chicago Tribune
