September Adds 248K New Jobs as Unemployment Dips to 6-Year Low

Econ Index Sept 2014Propelled by strong hiring across a range of occupations and industries, September saw 248,000 new jobs added to the economy, which helped drive down unemployment to a six year low of 5.9 percent.

The monthly jobs report from the U.S. Bureau of Labor Statistics also adjusted upward its count of hiring in August and July, increasing both by a combined 69,000 jobs. August’s initial anemic 142,000 estimate, which surprised analysts and prompted worrying about a hiring pause, was upped to 180,000.

Today’s announcement was a more pleasant surprise.

Economists predicted September’s numbers would be in the 215,000 to 220,000 range. The significantly higher number, plus the substantial upward revisions, signals that the August slowdown — only the second time this year hiring was under 200,000 — was a blip.

“The slower gain initially reported for August now appears to have been simply an aberration,” said Gad Levanon, director of macroeconomic and labor-market research at the Conference Board.

September’s job growth was concentrated in the service sector. Retailers and the leisure and hospitality industry added 35,300 and 33,000 jobs respectively. Grocers added 19,500 jobs, most of them marking the return to work of New England’s striking Market Basket employees. Restaurants and bars hired 20,400 new workers.

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Other sectors showing hiring strength:

  • Healthcare, up 22,600, the bulk coming from home health care and outpatient facilities;
  • Employment services hired 33,600 new workers, with temp agencies accounting for 19,700;
  • Professional and technical services, including jobs for architects and engineers, software developers and management and technical consultants, added 21,100 jobs;
  • The financial sector, among the hardest hit by the recession, added 12,000 jobs.

Goods producers added only 29,000 jobs, with manufacturing contributing 4,000 and construction adding 16,000. Mining added 9,000.

Wages and the length of the workweek changed little in September. Wage growth has been mostly stagnant this year, with hourly pay rates rising only 2 percent. The average workweek for all employees on private nonfarm payrolls was 34.6 hours in September.

The BLS report also showed participation in the labor force is continuing to contract, which is a factor in brining down the unemployment rate. September’s rate of 62.7 percent was the lowest since 1978. Even if no new jobs were being created, the unemployment rate would be decreasing since there are fewer workers employed or looking for work.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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2 Comments on “September Adds 248K New Jobs as Unemployment Dips to 6-Year Low

  1. Today’s announcement is a pleasant surprise to those who don’t check real unemployment figures, like the BLS U6, which is still over 12%. Other stats I’ve seen claim real unemployment is at 20% and higher, or in other words still close to Great Depression levels 4 years out from the crisis that started it all.

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