Tuesday, October 22, 2013
WASHINGTON (AP) — A dim view of the U.S. job market emerged today with a report that employers cut back on hiring in September just before a partial government shutdown began.
Just 148,000 jobs were added last month, a steep drop from August's gain, though they were enough to lower unemployment to 7.2 percent from 7.3 percent in August. The report bolsters expectations that the Federal Reserve will maintain its pace of bond purchases for the rest of 2013 to try to keep long-term loan rates low.
The government's release of the September jobs report had been delayed 2½ weeks by the shutdown. Temporary layoffs during the 16-day shutdown will probably depress October's job gain. That means a clear picture of the job market won't emerge before November jobs figures are issued in December.
"The economy is too fragile for the Federal Reserve to touch," Sung Won Sohn, an economist at California State University, said. "The shenanigans in Congress have hurt confidence and increased uncertainties, most likely hurting both consumer and business spending as well as hiring."