The non-farm payroll data came short of market expectations with a gain of only 142,000 jobs. Moreover, the report also presented revised-down figures for the months of July and August – a revision of a total of 59,000 jobs for both months. But besides the headline figures, was this report so grim? Let’s consider some of the good and bad takeaways from this report, what it means about the U.S. labor market and where does it leave us with the Fed’s rate decision.
The Good
Although the job market isn’t progressing at the same pace as it used to – and as the market becomes more efficient, we are likely to see slower growth – the rate of unemployment is still low at 5.1%. Moreover, even the broader measure of unemployment, the U6, which includes discouraged workers, has dropped to 10% last month – the lowest since mid-2008.
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