Teachers coming back to work after the summer break slewed the numbers? A closer look at Septembers jobs report Source: USA TODAY Publication date: 2013-10-22 Arrival time: 2013-10-23 A disappointing report Tuesday on Septembers employment growth was partly offset by small signs that the economy may be poised to grow more full-time, middle-income jobs. Employers added 148,000 jobs in September, extending a recent slowdown in payroll growth. Economists consensus forecast was for 180,000 new jobs. The unemployment rate, which is calculated from a separate survey, fell to 7.2% from 7.3%, the Labor Department said Tuesday. That was the lowest rate since November 2008. The closely watched report was scheduled to be released Oct. 4 but was delayed by the federal government shutdown. The survey may partly ease concerns that job growth for much of this year has been dominated by low-wage, part-time jobs. Two middle-income sectors that have lagged recently -- construction and government -- showed solid gains last month. Construction companies added 20,000 jobs in September, the most since February. Construction firms slowed hiring or shed jobs in mid-2013, largely because of uncertainty about federal spending cuts and budget battles in Congress, says Ken Simonson, chief economist of trade group Associated General Contractors. Some firms also have struggled to find skilled workers amid the housing recovery. But contractors in September likely could no longer saddle existing employees with more hours and were forced to expand their crews -- a trend that could foreshadow more hiring in coming months, he says. State and local governments, meanwhile, added 67,000 employees in August and September, up from just 15,000 the first seven months of the year. The return of schoolteachers from their summer breaks skewed the numbers, but state and local governments still appear poised to contribute to job growth as the improving economy grows their tax revenue, says Mark Zandi, chief economist of Moodys Analytics. The market may be evolving to more middle-income jobs, Zandi says. Another positive sign is that the economy added 691,000 full-time jobs last month and shed 594,000 part-time jobs. Businesses added just 126,000 jobs, while federal, state and local governments added 22,000. Still, the overall weak report prompted Barclays Capital to push back its estimate for when the Fed will begin to scale back its bond-buying stimulus from December to March. The research firm now expects the Fed to end the purchases in September.
Posted on: Wed, 23 Oct 2013 15:11:37 +0000
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