On Friday, US Labour Department’s closely monitored employment report, a probing indicator to labour market’s health, had unveiled that US nonfarm payrolls had been plunged to their lowest in nine months in September, as US employers seemed to be utterly reluctant to create new jobs amid a sharp decline in school hiring alongside a worsening shortage in available workers.
Nonetheless, an ease in delta cases across the world’s No 1 economy alongside an end to Government stimulus, would more likely to add a silver lining in US job growth over coming months, suggested analysts. Apart from a steep drop in nonfarm payrolls in September, other labour market data released earlier in the day came forth as a shimmering ray of hope with unemployment rate dropping to a fresh 18-month low of 4.8 per cent from an earlier 5.2 per cent, while US wages rose 0.6 per cent last month which had handily beaten an analysts’ estimate.
US non-farm payrolls drop to nine-month low in September
According to US non-farm payrolls data for September, US economy had created 194,000 jobs last month, while August data was revised higher to 366,000 jobs compared to a previous 235,000 job positions.
However, US employment has still been hovering below about 5.0 million jobs compared to a pre-pandemic peak reached on February 2020. Nevertheless, US average hourly earnings rose to 0.6 per cent from an earlier 0.4 per cent, while layoffs in permanent jobs had declined sharply, illustrating a sharp pick up lurking over the horizon on a gradually healing US labour market.
Meanwhile, addressing to Americans’ reluctance to return to work after nearly a year and a half of pandemic-associated Government stimulus that had reportedly skyrocketed US household wealth to a record $141.7 trillion as of June 30, a chief investment officer for Commonwealth Financial Network, Brad McMillan said, “The biggest problem is not that growth has slowed, it is that people are still scared to go back to work”.