The Labor Department released Friday the monthly job report, indicating that the U.S economy added only 156,000 net new jobs in September. This is fewer than the 175,000 expected by Wall Street. The Jobless rate climbed back to 5% in September.
The report breaks down new jobs gains and jobs lost in different segments. The biggest demand for new jobs was in the professional and business services, health-care and retail segments. Mining jobs figures remained stable, and factory jobs lost the most, about 13,000
Ameriprise Senior Economist Russell Price has commented on the jobs report, claiming that despite the weaker than expected date, the fundamentals of the U.S economy is in a good position. “It gives further indication the economy is doing fairly well and that consumers are likely to see good financial prospects. That’s a positive trend heading into the important retail holiday season,” Russell Price said.
As U.S. economic data has improved over the years, the Federal Reserve has been under pressure to increase short-term interest rates. The new job report might be a new obstacle for a rate hike.