The United States economy added 336,000 jobs in September and the unemployment rate remained unchanged at 3.8 percent, according to the latest employment report from the Bureau of Labor Statistics out Friday — but the stock market didn’t like those numbers.
Payroll employment rises by 336,000 in September; unemployment rate unchanged at 3.8% https://t.co/ZwrVfLviqL #JobsReport #BLSdata
— BLS-Labor Statistics (@BLS_gov) October 6, 2023
Despite the fact that estimates only expected 170,000 jobs to be added and the unemployment rate to dip to 3.7 percent, Dow futures dove more than 200 points after the jobs report was released — and it's all because of the ongoing fear of more interest rate increases from the Federal Reserve.
Live: Dow futures drop 200 points after strong jobs report sends yields higher @CNBC https://t.co/H20OaHNOoU
— Mike Epling (@michaelevs) October 6, 2023
A better-than-expected jobs number means the Fed and its Chair Jerome Powell are even more likely to keep interest rates higher, for longer, inflicting more hardship on the American people and small businesses. Already, the Fed’s response to inflation under Biden has seen interest rates soar to their highest levels since the early 2000s.
In addition to September's number, the Bureau of Labor Statistics revised previous months upward by 119,000 jobs:
The change in total nonfarm payroll employment for July was revised up by 79,000, from +157,000 to +236,000, and the change for August was revised up by 40,000, from +187,000 to +227,000.
BLS reported that average hourly earnings in September rose 0.2 percent for a 12-month increase of 4.2 percent. But, as many — including Townhall — have pointed out month after month, real wages for Americans have remained negative for most months, including more than 24 consecutive months recorded under Biden, in which wages lag behind the inflation rate leaving families with negative real wages.
So, expect Biden and the White House to herald the September jobs report but know that their gleeful victory lap brings with it higher interest rates and more pain for small businesses, homebuyers, and everyday Americans.
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