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Weak labor market: US unemployment rate fell to 3.5% in September

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One of the main concerns for the US is that the continued rise in interest rates to keep inflation in check is already cooling the economy. A slowdown in job creation can therefore be understood as a symptom of this cooling down.

U.S. unemployment fell to 5.8 million in September, The fact that the unemployment rate will be 3.5%.

That’s two-tenths less than in August, according to data released this Friday by the Bureau of Labor Statistics (BLS).

Still, job creation slowed in September, adding 263,000 new jobs.

This could already be affecting the labor market at a time when all eyes are on the labor market impact of raising interest rates to curb inflation.

A month ago, in August, 315,000 new jobs were created, and in July, 500,000 new jobs were created. This means he’s back to pre-pandemic levels in February 2020.

However, the 52,000 drop in job creation (237,000 from July) could indicate that the labor market is starting to slow down.

This comes after the Federal Reserve raised interest rates to the 3-3.25% range five times in a row, the highest level in 14 years.

The measures will continue over the next few months and were put in place to control inflation, which reached 8.3% in August.

US unemployment rate

By sector, leisure and hospitality jobs rose significantly, adding 83,000 jobs to pre-pandemic levels.

The health sector also added 60,000 jobs, returning to February 2020 levels, while professional and business services employment continued its upward trend in September (+46,000).

Manufacturing employment continued its upward trend in September (+22,000) and construction employment continued to grow (+19,000).

The number of long-term unemployed people (those who were unemployed for 27 weeks or more) in September was 1.1 million, accounting for 18.5% of all unemployed people.

The superior strength of the American labor market is one of the main points of pride of US President Joe Biden, and one of the strengths he emphasizes in escaping the feared recession.

Source: Biobiochile

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