Carrier: September employment data ‘disappointing’
Oct. 23, 2013 – The unemployment rate declined slightly last month as 148,000 net jobs were added to payrolls – a result NAFCU Director of Research and Chief Economist David Carrier described as “disappointing.”
According to data published by the Bureau of Labor Statistics and analyzed by NAFCU, the unemployment rate in September was 7.2 percent, down from August’s rate of 7.3 percent, as 73,000 workers entered the labor force.
“The employment report was disappointing again,” said Carrier in a NAFCU Macro Data Flash report. “We are still below the level of employment we had back in 2008, and at the tepid pace of new hiring, it will take years longer to reach full economic recovery. The participation rate remains low, and we are monitoring that carefully. If unemployed workers begin to re-enter the labor force in large numbers, the unemployment rate will remain elevated.”
Non-farm payrolls in September rose by 148,000, according to data published by the Bureau of Labor Statistics. August’s numbers were revised upward by 24,000 to 193,000 and July’s were revised downward by 15,000 to 89,000.
“The ongoing budget stalemate in the federal government may be causing delays in hiring, health-care providers are adjusting to cutbacks in Medicare and Medicaid payments, and mortgage lenders are reducing staff as higher interest rates reduce loan volume,” Carrier said. “Sluggish employment growth was likely a factor in the Federal Reserve’s decision to extend their asset purchase program, and tepid growth could lead to further extensions of the program going forward.”
Total private-sector payroll employment increased by 126,000 jobs during September. The federal government lost 6,000 jobs.
NAFCU Macro Data Flash reports