[ad_1]
The latest jobs report showed gains, but not at the level expected by the market. (iStock)
The United States created 194,000 new jobs in September, pushing the employment rate down 0.4 percentage points to 4.8%, according to Friday’s report. US Bureau of Labor Statistics report (BLS). However, that number was well below the job gain expected for the month.
“Job growth remained weak in September after equally disappointing gains in August,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association (MBA). “Although private sector employment growth was 317,000 and several categories posted gains, including professional services, there was a significant decline in education employment. This was a by-product of the fact that hiring in schools was still relatively low compared to typical seasonal patterns. “
Fratantoni said that with the unemployment rate hitting below 5% and steady job growth, although lower than expected, will keep the Federal Reserve on track to end its economic recovery while closely monitoring the labor market. This means that interest rates are still expected to rise steadily over the next few months if the labor force continues to grow and the COVID-19 Delta variant does not cause significant disruption.
You can take advantage of low rates by refinancing your home loan, which could help lower your monthly mortgage payments. Visit Credible to find your personalized rate and see how much you can save.
MORTGAGE RATES RISE BY MORE THAN 3% FOR THE FIRST TIME SINCE JUNE: FREDDIE MAC DATA
Economic improvement is not “spectacular enough”
Speaking on the September jobs report at a press conference on Friday morning, President Joe Biden touted the economy’s success during his presidential term and said the jobs report was positive news. However, he recognized the expectations of the market.
“Maybe that doesn’t sound dramatic enough,” Biden said. “I too would like him to go faster, but we are making steady progress.”
The labor force participation rate was little changed at 61.6% in September, the Labor Department reported. However, some sectors, such as the public education sector, have seen a decline in normal seasonal hires, with back-to-school rules varying from state to state. An economist said the report showed mixed signs of a recovery in today’s abnormal hiring season, especially in the education sector.
“As in recent months, job gains have been concentrated in the service sectors; in particular, the leisure and hospitality sectors (+74,000 jobs), professional and business services (+60 000 jobs) and retail (+56,100 jobs) showed healthy gains last month, ”said Fannie Mae chief economist Doug Duncan. public, local and private education sectors fell by 180,000 in September.
“Hiring in these industries, while positive on an unadjusted basis, was much lower than expected for September, leading to seasonally adjusted job losses,” Duncan said. “This abnormal seasonal pattern has distorted the overall picture of job growth for several months.”
The new employment level in the report is expected to keep the Central Bank on track with its plan to end its stimulus measures this year and possibly consider interest rate hikes as early as 2022. Borrowers can save money now before rates potentially rise by refinancing. their private student loans. Visit Credible to view options for multiple lenders at once and choose the one that suits you best.
BIDEN ADMINISTRATION ANNOUNCES REVISION OF STUDENT LOAN REMISSION PROGRAM, WILL IMPACT OVER 500K BORROWERS
“More to do, but great progress.”
Speaking of the jobs report, Biden said there was still “more to do, but great strides” have been made on the road to recovery from the pandemic-induced recession.
An economist said a more positive report on recent changes in employment would have been a better sign of an improving economy, but the September report’s forecast will still be good enough for the Federal Reserve.
“For several members of the Federal Reserve, a stronger employment report in September would have passed the employment test to start cutting asset purchases,” said Dawit Kebede, senior economist at Credit Union National Association (CUNA). “However, falling unemployment rates may be enough for the Federal Reserve to start slowing the purchase of Treasury securities and mortgage-backed securities as early as next month.”
Americans can take advantage of today’s low interest rates by obtaining a personal loan to consolidate other high interest debt. If you are interested in a loan, contact Credible to speak to a credit expert and get all your questions answered.
Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.
[ad_2]
Source link