The job data for September was quite disappointing as seen from the release of the labor data for the month by the government. There was an addition of 136,000 jobs, falling short of analysts’ expectations of about 145,000 job additions for September.
Rate of unemployment stood at an all-time low level of 3.5% and the yearly wage gains touched a 2.9%, a fall from the previous month’s figure. The figures released by the Bureau of Labor Statistics on Friday come in the wake of high volatility on Wall Street. Heavy downfall was witnessed on all three main indices with a highest decline of 1,100 points registered on Dow Jones Industrial Average. The downfall trend began after release of data indicating a manufacturing slowdown, the highest to be seen in a period of ten years.
The private sector witnessing a weak hiring period and the services industry not showing the required resilience has made investors over the world quite edgy. Economists have citied the ongoing U.S.-China trade dispute for an economic slowdown though President Trump put the blame squarely on the call for his impeachment by the Democrats as the reason for a shrinking economy.
The edginess of investors is quite understandable in view of the interest rates being already cut down by Fed twice this year, the instability of markets, pressure-some tariff war and a bleak global outlook.
The job data was revised upward for the July and August figures and though the average for the month is much less than previous year’s job addition rate of 223,000 jobs per month it still is enough to suffice for the rise in working-age populace.
Looking at the job data for September, it will not be surprising if the Fed decides for a rate cut thrice in a row this year. The Fed meeting on monetary policy is slated on 29th-30th October.