September jobs report ‘a mixed bag’

The delayed September jobs report was released Thursday, showing employers added 119,000 jobs during the month, with unemployment at 4.4%. The government shutdown delayed September’s numbers, and it’s unclear when the Bureau of Labor Statistics will release the October numbers.

“The September jobs data was a mixed bag that does not provide any clarity for the Federal Open Market Committee’s (FOMC) December rate decision. Job growth beat expectations, but the pattern of downward revisions to prior months continued,” said America’s Credit Unions Chief Economist Curt Long. “Meanwhile, the unemployment rate ticked up to 4.4% and seems poised to reach or surpass the FOMC’s year-end forecast of 4.5%. That was enough for the committee to pencil in another rate cut, but more recently the hawks have begun to dig their heels in.”

“There is still a case for cutting, but it likely is not strong enough to move a sufficient portion of the committee. As high rates weigh on consumer sentiment, loan demand, and overall spending, the low borrowing rates served up by credit unions are helping to keep the economy and consumers afloat,” he added. “During the government shutdown, credit unions demonstrated the critical role they play in supporting their members through financial turbulence. With strong capital and abundant reserves, they are well-positioned to do so again should the labor market weaken.”