The U.S. unemployment rate ticked higher last week. The September jobs report showed the United States added 156,000 new jobs in September. That was 16,000 fewer than economists were expecting and 11,000 fewer than were added in August, according to Barron’s.
That doesn’t sound like good news, does it?
On the other hand, the report showed more people are working and looking for jobs. Also, wages increased so people are earning more. The Wall Street Journal wrote:
“The report – marked by a slight uptick in the unemployment rate to 5 percent – largely fit the narrative Fed Chairwoman Janet Yellen laid out for the labor market after the central bank’s September policy meeting. People are rejoining the labor force in search of work. Many of them are finding jobs, but not all…Ms. Yellen sees the return of workers to the job search process as a healthy sign.”
That sounds like good news, right?
The jobs report seemed to support the conclusion of The New York Times that there are two economic realities in the United States, “…healthy hiring and falling unemployment on the one hand, millions of economically sidelined Americans on the other…”
Uncertainty surrounding the jobs report caused U.S. stock markets to fall last week.
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http://www.wsj.com/articles/hilsenrath-jobs-data-ensures-no-fed-rate-increase-in-november-1475846564 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/10-10-16_WSJ-Hilsenrath_Jobs_Data_Ensures_No_Fed_Rate_Increase_in_November-Footnote_2.pdf)
http://www.nytimes.com/2016/10/08/business/economy/jobs-report-unemployment-wages.html?_r=0 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/10-10-16_NYTimes-US_Economy_Showing_Resilience_Added_156000_Jobs_Last_Month-Footnote_3.pdf)