With the payrolls falling by 33,000, the unemployment rate has fallen to 4.2 percent. The Bureau of Labor Statistics has recorded the lowest unemployment rate in 16-years. The job loss is even higher than the time when the economy was going through the Great Recession. On the other hand, closely watched hour wages have gone up to an annualized rate of 2.9 percent.
Economists had predicted the payroll growth of 90,000 in September as compared to the 169,000 in August. Even at this number, the unemployment rate should have been steady at 4.4 percent. The part-time jobs have also fallen from 8.6 percent to 8.3 percent in the last month in the United States.
The effects of weather impact were quite obvious. The FMCG market tumbled, the supply and distribution channel was heavily impacted. Which further led to the loss of 105,000 job positions across the US. Agriculture sector too reported a heavy loss in the job numbers in the last month.
The only positive data is reported in the healthcare, transportation and business services sector. Healthcare added 23,000 new jobs, transportation and warehousing added 22,000 while professional and business services added 13,000 new jobs in the US economy. According to the report, average hourly earnings have gone up by 12 percent.
It has been seen that Indian students, who have been heading to the US in large numbers in recent years, are now wary of going to American institutions. According to a survey, around 26% of universities reported a decline in undergraduate applications from India, in addition to a 15% decline in India’s graduate applications. With this massive job loss in just a month time, the path to the US for a bright future wont be easy for Indian students.