There were strong upward revisions to prior months and a larger than expected drop in the unemployment rate.
The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.4 million over the month; these individuals accounted for 22.9 percent of the unemployed. This suggests that the tax cuts that took effect this year are boosting job opportunities.
The unemployment rate declined by 0.2 percentage point to 3.7 per cent, the lowest rate since 1969. This probably won't be the month to learn that lesson, however.
The average hourly wage in the USA last month increased by 0.3% compared to August and by 2.8% in annual terms, both indicators have coincided with market expectations. Unemployment rates for women (down 0.1), Hispanics (up 0.1), Asians (down 0.1) and African-Americans (down 0.3) showed mixed changes. Then, thanks to an Obama-initiated economic stimulus that some Democrats labeled necessary but inadequate, and 90 percent of Republicans flat-out opposed, the number of available jobs grew steadily, albeit with excruciating slowness over the next six years.
The September results were 25 percent below what economists had forecast. Teen unemployment fell by 0.3 percent to 12.8 percent. We expect the overall labor force participation rate to remain steady in coming years as the rise in prime working-age participants outweighs the drag from an aging population. With the bigger than expected decrease, the unemployment rate fell to its lowest level since hitting 3.5% in December of 1969.
Economy adds 134K jobs in September. However, the service-providing sectors added a below-trend 75,000 jobs after the massive 217,000 August gain. The combination of gains in employment and moderate increases in wages is lifting disposable incomes.
Job gains were noted in healthcare, up 26,000, transportation and warehousing, up 24,000, and construction, up 23,000.
A cornerstone of Trump's economic policy is strengthening automobile manufacturing in the United States.