Kansas City Jobs Report

5 Things to know about the national job report

The Bureau of Labor Statistics reported September’s unemployment rate declined to 3.7% with 134,000 jobs added. Job additions were lower than economists’ predictions of 168,000, but regardless, a 3.7% unemployment rate continues to tell the tale of an impressive economic rebound. According to CNN, unemployment has not been this low since December of 1969 (or 49 years ago.)

Regionally, the Bureau of Labor Statistics breaks down the state and metro unemployment rates one month behind the national breakdown. Those numbers will be released mid-month every month.

Last month’s jobs report marked the 10-year anniversary of the 2008 financial crisis, with employers cutting more than 440,000 jobs in September of 2008. Over 7 million jobs were cut in the months to follow. Ten years later and a September unemployment rate at a nearly two-decade low, and America’s workforce is in a far different environment.

Here are 5 other things to know about September’s jobs report:

1. (Very) Average Hourly Earnings: Employee earnings rose by 8-cents in September, putting wage growth year-over-year at 2.8%. While wages have long been the pain point in an otherwise healthy economy, 2018 might finally be the year to change that, with companies like Amazon announcing they will be increasing hourly pay for all full time, part time and seasonal employees starting November 1. Our Senior Vice President, Amy Glaser, spoke with The New York Times about how this move could affect the entire labor landscape, putting increased pressure on other employers to not only hike up their own pay rates but also consider additional perks such as giving workers more control over their schedules.

2. Hurricane Florence: According to the Bureau of Labor Statistics, Hurricane Florence did affect parts of the East Coast during the September reference periods for the establishment and household surveys. However, response rates for the two surveys were within normal ranges. Employers should check back mid-month (October 19) when state data is released to see how impacted the Carolinas, in particular, were impacted due to the storm.

3. Market Plunge: In early October, Federal Reserve Chair Jerome Powell hinted that the Fed had a long way to go before interest rates would hit neutral, as the economy currently appears to be so healthy. The stock kept a close eye on the September jobs report release, then promptly dropped the Dow Jones Industrial Average 45 points for fear that Powell’s comments suggest further interest hikes are on the horizon.

4. Manufacturing Boost: Following a loss of approximately 3,000 jobs in August – which some experts blamed on rising costs, weak demand, trade tensions, and competition on a global scale – the manufacturing industry gained 18,000 jobs in September. In 2018, the industry has gained about 278,000 jobs, with four-fifths accounted for in the durables goods sector.

5. Healthy Health Care: Health care jobs rose by 26,000 in September. Hospitals accounted for 12,000 of those jobs, while ambulatory services accounted for 10,000. Over the year, the industry has increased by over 300,000 jobs.