U.S. employers added just 29,000 jobs in September as hiring slowed
By Emma Carter
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Intro
The U.S. labor market weakened in September, with employers adding far fewer jobs than expected and earlier employment figures revised downward.
Vocabulary
| Word | Part of speech | Meaning | Example |
|---|---|---|---|
| momentum noun | noun | Meaning: the strength or progress that keeps a process developing | Example: The project gained momentum after several successful meetings. |
| revised adjective | adjective | Meaning: changed after new information or a closer examination | Example: The revised schedule gives students more time to prepare. |
| widespread adjective | adjective | Meaning: existing or happening in many places or among many people | Example: The storm caused widespread damage across the region. |
| workforces noun | noun | Meaning: groups of people employed by organizations or industries | Example: Several companies are expanding their workforces this year. |
| dismissed verb | verb | Meaning: removed from a job, usually by an employer | Example: Several employees were dismissed after the company closed. |
| purchasing adjective | adjective | Meaning: related to the ability to buy goods and services | Example: Rising prices can weaken consumers’ purchasing power. |
| benchmark adjective | adjective | Meaning: used as a standard for comparison or measurement | Example: The company established a benchmark target for reducing energy use. |
The story
The U.S. labor market lost momentum in September, as employers added only 29,000 jobs. The result was far below what forecasters had expected and continued a recent pattern of weaker hiring. Employment gains for July and August were also revised downward by a combined 60,000 jobs, pushing July’s total into negative territory.
The report did not show widespread layoffs. However, financial services and government reduced their workforces, while most other industries continued to add employees at a slow pace. Healthcare, which has regularly supported job growth, added 17,000 positions. Restaurants and bars added 11,000 jobs, or about one-third of the total increase.
The unemployment rate rose to 4.2% in September from 4.1% the month before. The unemployment rate measures the share of people who are looking for work but do not currently have a job. A higher rate can indicate that finding work is becoming more difficult, although it does not necessarily mean that large numbers of people have been dismissed.
Pay also showed signs of slowing. Average wages were 3% higher than a year earlier, a smaller increase than in the previous month. Because prices have recently risen faster than pay, workers’ real purchasing power—the amount their income can buy—has been declining.
The figures may influence the Federal Reserve’s next decision on interest rates. The central bank recently raised its benchmark rate by a quarter of a percentage point to help control inflation. The weak jobs report makes another increase later this month less likely. Stock and bond markets responded with a modest rally, although investors still expected at least one more rate increase before the end of the year.
Warm-up questions
- What signs might show that a country’s labor market is weakening?
- How could slower wage growth affect ordinary households?
Comprehension questions
- How many jobs did employers add in September?
- What happened to the employment figures for July and August?
- Which two areas reduced their workforces?
- Why might workers’ real purchasing power be declining?
- How did the report affect expectations about another rate increase?
Opinion questions
- Should policymakers worry more about weak hiring or rising unemployment? Explain your view.
- Would you prefer slower inflation with weaker wage growth or faster wage growth with higher inflation?
Further discussion
- How might weak employment data influence businesses, investors, and workers differently?
- What other information should policymakers examine before changing interest rates?
Writing prompt
- Write a short analysis explaining the report’s main findings and their possible effects on workers and interest-rate policy.
