Employers added just 134,000 jobs last month, the fewest in a year, the Labor Department said Friday.
According to a Reuters survey of economists, NFPs nonfarm likely increased by 185,000 in September after surging 201,000 in August. The jobless rate fell from August's 3.9 percent.
The Commerce Department also said August orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans, fell 0.9 percent instead of declining 0.5 percent as reported last month.
The US central bank raised rates last week for the third time this year and removed the reference in its post-meeting statement to monetary policy remaining "accommodative".
Following this report, stock futures were lower, but little-changed, while Treasury yields were still near their highs of the week with the 10-year Treasury sitting near 3.21% and the 30-year near 3.38%.
Still, if the prime-age workers increasingly enter the job market, their numbers could expand the workforce a bit and help accelerate economic growth. "It's going to reinforce the Fed's path for raising rates". Workers are counted as employed as long as they show up for part of their pay period. The contrast between August's fairly robust pace to September's maintenance level becomes starker as a result, however.
Hurricane Florence struck North and SC in the middle of September and closed thousands of businesses.
Economists had expected job creation to slow but only to 184,000, even with the hurricane effect, from the 270,000 net new positions created in August. The BLS noted that the storm didn't impact the reporting of the data, but it certainly provided a temporary disruption to job creation in the Atlantic seaboard region.
Employees temporarily left unable to work during natural disasters can be left off the government's monthly jobs survey, especially part time workers who receive no pay during the week of the survey, meaning figures can rebound in the month after a storm.
Wages outpaced inflation in September, although both the rate of wage growth and inflation have tapered off slightly in the last month. Weather-related absences and curtailments also took a toll on the tally of aggregate hours worked. We expect employers to more rapidly do what they have been doing in recent quarters: automate, increase working hours and pull people back to the labor force, especially young men, whose labor force participation rate barely recovered yet.
So far, job growth has been surprisingly strong this year despite the hurdles, averaging about 200,000 a month, up from 182,000 in 2017.
The jobless rate for adult men is 3.4 per cent, teenagers 12.8 per cent, Blacks 6 per cent, Asians 3.5 per cent and Hispanics 4.5 per cent, the data said. That's consistent with other reports showing strength in such activity. But retailers cut 20,000 jobs.
If the jobless rate should fall two ticks to 3.7 percent, it would reach the lowest level in almost five decades.
Private employment rose by 121 000, compared with a median estimate of 180 000.