The unemployment rate remained low due to a substantial 350,000 person drop in the labor force compared to a 236,000 person decrease in the household employment survey.
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Among the few positive signs in the report was a figure showing more full-time job opportunities.
Andrew Goodwin, senior UK economist at Oxford Economics, said that he expects UK rates to rise in May but added that any delay by the Fed adds more global uncertainty.
September’s jobs report revised the gain in total nonfarm payroll employment for July downward by 22,000 to 223,000, and the gain for August downward to 136,000.
“I think businesses are being cautious with slower growth in China”.
Central bank policymakers decided they wanted to see some more economic data before raising the rate to determine if the market turmoil and global slowdown was harming the U.S. economy.
Remember how we were all repeatedly being warned there would be a massive negative reaction in the stock market when the Fed starts to tighten?
Other reports of late suggest the U.S. economy remains sturdy, but lost steam in recent months.
The USA economy added a disappointing 142,000 jobs in September and the unemployment rate stayed at 5.1 percent, the U.S. U.S. job growth has averaged 167,000 over the past three months.
Job growth in September was hurt by a decline in the labor force participation rate – a measure of how many people are working or looking for work – to 62.4 from 62.6.
The proportion of Americans who either have a job or are looking for one fell to a 38-year low, partly reflecting retirements of older workers from the baby boomer generation. The average hourly earnings for private-sector workers fell by 1 cent to $25.09.
He added that it also raises doubts about whether the Fed will act at its final meeting of the year in December. Over the year, the unemployment has dropped by 0.8 percent and the number of unemployed persons is down by 1.3 million persons.
The average work week for all workers fell to 34.5 hours from 34.6 hours. This number was well below the pre-report estimate of 202,000 jobs.
Last month, businesses added 118,000 jobs, driven by advances in health care, leisure and hospitality and professional and business services. Retailers increased payrolls by 24,000. The trend line, it seems, isn’t positive.
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“Such a woefully weak jobs number is likely to push back any rate hike into 2016, and has unsurprisingly hit a market that expected a pre-Christmas rise like a bucket of cold water”, David Lamb, the head of dealing at the foreign exchange specialist Fexco, said.
