Oct. 22 - The delayed September jobs report showed fewer new jobs than expected, but markets rallied on relief it will likely further delay any cutbacks in Fed bond buying. Bobbi Rebell reports.
The first jobs report since the government shutdown showed fewer jobs than expected were added in September- a sign the economic recovery could be losing momentum. The economy added 148,000 new jobs last month- below the 180,000 expected. Pinpointing how the lead up to the government shutdown impacted the labor market may be difficult given all the different factors employers were already dealing with, says Gus Faucher of PNC Financial Services. SOUNDBITE: GUS FAUCHER, SENIOR ECONOMIST, PNC FINANCIAL SERVICES (ENGLISH) SAYING: "I'm not sure it got much worse with the concern about the shutdown, but that has been a constant. But you have businesses that were scared by what happened during the recession, the pace of the recovery has been disappointing, so they've been reluctant to hire and also I think you have concerns about the health care law that might be weighing on hiring as well." One silver lining: the unemployment rate inched lower to 7.2 percent. That is the lowest level since November of 2008. Of note: construction jobs rose 20,000- a good sign the housing market recovery continues to build. Retail was also up but leisure and hospitality shed the most jobs since December of 2009. Average hourly earnings rose by 3 cents in September. The length of the average workweek held steady at 34.5. Stocks rose and treasury yields fell on the news- on the belief that the Fed would delay tapering back its massive $85 billion a month bond buying program. This is the last big piece of data the Fed gets before its next meeting begins on October 29th.