U.S. employment fell in September for the first time in seven years due to workplace disruptions caused by Hurricanes Harvey and Irma, the Labor Department said on Friday.
Non-farm payroll employment declined by 33,000 jobs last month, the first decline since 2010, the department said in its latest jobs report, noting "a steep employment decline" in food services and drinking places and below-trend growth in some other industries "likely reflected" the impact of Hurricanes Irma and Harvey.
However, other details of the jobs report showed that the underlying momentum in the labor market remains unimpaired. The unemployment rate, which was not affected by the storms, fell from 4.4 percent to 4.2 percent, the lowest rate since 2000, the department said.
Average hourly earnings for all employees rose by 12 cents to 26.55 U.S. dollars in September. Over the past 12 months wages increased by 2.9 percent, up from 2.7 percent in the prior month.
Analysts said the single-month drop in employment should be temporary and job growth will rebound markedly over the next few months. Fed officials will wait for the jobs reports in October and November to confirm the labor market momentum before they consider another rate hike in December.
The central bank said last month it expected labor market conditions will strengthen somewhat further, while signaling there would be one more rate hike by the end of the year.
Non-farm payroll employment declined by 33,000 jobs last month, the first decline since 2010, the department said in its latest jobs report, noting "a steep employment decline" in food services and drinking places and below-trend growth in some other industries "likely reflected" the impact of Hurricanes Irma and Harvey.
However, other details of the jobs report showed that the underlying momentum in the labor market remains unimpaired. The unemployment rate, which was not affected by the storms, fell from 4.4 percent to 4.2 percent, the lowest rate since 2000, the department said.
Average hourly earnings for all employees rose by 12 cents to 26.55 U.S. dollars in September. Over the past 12 months wages increased by 2.9 percent, up from 2.7 percent in the prior month.
Analysts said the single-month drop in employment should be temporary and job growth will rebound markedly over the next few months. Fed officials will wait for the jobs reports in October and November to confirm the labor market momentum before they consider another rate hike in December.
The central bank said last month it expected labor market conditions will strengthen somewhat further, while signaling there would be one more rate hike by the end of the year.
Latest comments