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US adds 4,600 temp jobs, overall job growth misses expectations

October 02, 2015

The US gained 4,600 temp jobs in September, but the year-over-year growth rate slowed for the third consecutive month, according to seasonally adjusted data from the US Bureau of Labor Statistics. Meanwhile, the US added fewer nonfarm jobs overall than forecast.

August’s gain in temp jobs was revised downward from 10,700 to 6,600.

The number of temp jobs rose 3.71% on a year-over-year basis in September, down from 4.08% in August and 4.56% in July.

The temp penetration rate — temp jobs as a percent of total nonfarm jobs — was consistent at 2.041% in September compared to 2.040% in August.

For total nonfarm employment, the US added 142,000 jobs in September. That compares to an average monthly gain of 167,000 for the last three months, according to the BLS. Job gains occurred in healthcare and information, while mining employment fell.

September’s jobs report revised the gain in total nonfarm payroll employment for July downward by 22,000 to 223,000, and the gain for August downward to 136,000.

Total nonfarm jobs also fell short of analysts’ projections; Bloomberg reported the increase fell below the median forecast of 96 economists, which called for a 201,000 advance.

CBSNews called the report, “one big disappointment.”

“Ugly, really ugly, it’s just hard to find anything good in the report,” JJ Kinahan, chief strategist at TD Ameritrade, told CBSNews. “After last month we could all point to jobs, and say at least they are holding in there. The report is telling us the domestic economy is slowing.”

September’s job growth is consistent with the pace seen in 2012 and 2013, but not as robust as last year’s, according to a statement from US Labor Secretary Thomas Perez.

A gain of only 142,000 new jobs in September on top of a soft reading of 136,000 in August provides more evidence that the US economy is experiencing a slowdown in job growth, The Conference Board said in a statement.

“While disappointing compared with expectations, this slower job growth is more in line with the mediocre GDP growth of recent years, and also suggests that the very low productivity growth during that time is not sustainable,” the statement said. “Part of the weakness in the recent slowdown in job growth was a result of the drop in manufacturing employment which is clearly suffering from weak exports growth. Even if employment continues to grow at about 150,000 per month, the lack of any signs of a recovery in labor force growth suggests that the unemployment rate will continue to go down, perhaps going below 5% by the end of the year.”

The US unemployment rate was 5.1% in September, unchanged from August. The college-level unemployment rate, which can serve as a proxy for professional employment, was at 2.5%, also unchanged from August.

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