WASHINGTON — The September employment report, along with revisions to previous periods, painted a picture of a still-weak economy, even as August’s pervasive problems were revised away.
The September payroll gain of 103,000 was at the high end of expectations but included 45,000 returning telecommunications strikers. That means it was inflated, and a truer picture of the gain might show half the advance.
Private payrolls were 137,000 higher in September after a 42,000 gain in August. After adjusting for the return of the striking workers, the pace was about 95,000 higher a month.
Upward revisions to August and July payrolls totaled 99,000.
Job gains remained centered in a few private industries. Government jobs posted a 34,000 loss as local education fell 24,400. Unadjusted, these jobs soared 818,100.
The September payroll composition included manufacturing down 13,000 in its biggest drop since 2010: construction, in a surprise, gaining 26,000, retail rising 13,600, finance falling 8,000 and health care surging 43,800.
Private average hourly earnings gained 3 cents to post a 2% gain over the year, and hours jumped, both good signs of rising production and incomes.
As always, the overall September payroll seasonal adjustment was severe, cutting a 519,000 unadjusted payroll gain by more than 400,000.
The overall unemployment rate was unchanged at 9.1%, showing the economy is still stressed, but includes a downshift for adult men.
The bottom line is the economy slowed in the last six months, with average job gains of 72,000 after 161,000 for the previous seven months. That should be enough to assure additional stimulus.
