September job growth fell slightly short of expectations, coming in at 263,000. The trucking industry lost 11,000 jobs in September. The number of job openings overall slowed, dropping to 10.1 million. Unemployment fell to 5.8 million, but there are still 1.74 jobs available for every person unemployed. These reports show little ease in the inflationary pressures driven by an employee market.
August's Job Opening and Turnover Survey
At the end of August, job openings fell to 10.1 million, and hires came in at 6.3 million. The quit rate was unchanged at 4.2 million, and layoffs and discharges increased slightly to 1.5 million. While the number of job openings has dropped, it remains an employee market with 1.74 available per unemployed person. As the ratio between job openings and the unemployed remains high, there has been little change to the inflationary pressures from this sector.
Three sectors saw a larger decrease in job openings. The number of job openings decreased in Healthcare and Social Assistance by 236,000. Other Services (-183,000) and Retail Trade (-143,000) also saw drops.
The number of hires decreased in the Federal Government. Quits increased in Accommodation and Food Service (+175,000) and fell in Professional and Business Services (-94,000). The numbers of layoffs (1.5million) and discharges (1 million) were little changed.
September Jobs Report
Non-farm payroll grew by 263,000 in September, coming in below estimates. Unemployment decreased to 3.5% as the labor force participation rate decreased slightly to 62.3%. August saw a decrease in permanent job losers, falling to 1.2 million, but long-term unemployment saw little change at 1.1 million.
Leisure and Hospitality (+80,000), Healthcare (+60.000), Professional Services (+46,000), Manufacturing (+22,000), Construction (+19,000) and Wholesale Trade (+11,000) all saw gains in September. Trucking Transportation saw a loss of 11,000 jobs. Overall, Transportation and Warehousing were down 8,000, as the loss in trucking was offset by a gain of 3,000 jobs in air transportation.
While the number of job openings is slowing, these reports do not show the decrease in inflationary pressures desired by the Fed. The number of jobs to candidates remains high, maintaining a job seekers market.
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Debra Watkins covers recruitment and digital marketing for Lionzone. A Nashville native, after graduating from the University of Kentucky, Debra utilized her research and writing skills in the museum and heritage tourism fields, rising to director of two institutions before returning to Nashville in 2020 to join Lionzone.