The U.S. Added 119,000 Jobs. So Why Did Unemployment Go Up?
Work News | New Stardom
Trend Analysis
Photo by David Jones
Employers in the United States added 119,000 jobs in September, a report released late because the federal shutdown paused data collection. The shutdown also means the government will not publish a full October report, since the household survey was never carried out and cannot be reconstructed. At the same time, the unemployment rate rose to 4.4 percent because the number of people looking for work increased faster than hiring. The shift suggests a labor market that is no longer as tight as it was earlier in the year, with more people returning to the job hunt and not securing positions quickly.
Hiring concentrated in a few sectors
Healthcare, hospitality and construction continued to expand, while manufacturing, transport, warehousing and parts of the public sector posted declines or stayed flat. The concentration of gains makes the headline figure look stronger than the underlying trend. Workers who lost jobs in slower sectors cannot easily move into areas that require credentials, physical work or irregular hours, which means open positions do not always match the people searching.
Labour-force growth outpacing hiring
Many of the jobs added in September were part time or lower wage. That does not help workers who need full time schedules to replace lost income. A worker moving from a full time job to a short hour role still appears in the payroll count, but may remain unemployed or underemployed in the household survey if the new role does not meet their needs. The result is a labor market that continues to add jobs but cannot fully absorb the workers seeking them. It reflects a structural mismatch more than a shortage of skills.
The establishment survey produces the job count by tracking positions at businesses. It is broad and stable, but it does not distinguish between full and part time work. The household survey determines the unemployment rate by asking individuals if they have a job, lost one or are looking for one. Because it captures labor force shifts, it can show rising unemployment in months when payrolls increase. In September the household survey recorded more people entering or reentering the job market, while the establishment survey captured hiring that was positive but limited. Together the surveys show a labor market that is growing but not quickly enough to keep pace with the number of people searching for work.
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