Payroll Employment Rises by 263,000 in September; Unemployment Rate Declines to 3.5%
In September,
The unemployment rate fell by 0.2 percentage points to 3.5 percent, and the number of unemployed persons decreased to 6.0 million. The number of unemployed persons edged down to 5.8 million in September.
Among the unemployed, the number of permanent job losers decreased by 173,000 to 1.2 million in September. The number of persons on temporary layoff was changed little at 758,000. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.1 million in September. The long-term unemployed accounted for 18.5 percent of all unemployed persons.
The labor force participation rate was little changed at 62.3 percent in September, and the employment-population ratio was unchanged at 60.1 percent. Both measures are 1.1 percentage points below their values in February 2020, prior to the coronavirus (COVID-19) pandemic.
The number of persons employed part-time for economic reasons was little changed at 62.3 percent in September, and the employment-population ratio was unchanged at 60.1 percent. Both measures are 1.1 percentage points below their values in February 2020, prior to the coronavirus (COVID-19) pandemic.
The number of persons not in the labor force who currently want a job was little changed at 5.8 million in September and remains above its February 2020 level of 5.0 million. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job.
Among those not in the labor force who wanted a job, the number of persons marginally attached to the labor force was little changed in September at 1.6 million. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, increased by 119,000 to 485,000 in September.
INDUSTRY FOCUS
- Total nonfarm payroll employment increased by 263,000 in September. Monthly job growth has averaged 420,000 thus far in 2022, compared with 562,000 per month in 2021. In September, notable job gains occurred in leisure and hospitality and in health care.
- Leisure and hospitality added 83,000 jobs in September, in line with the average monthly job gain over the first 8 months of the year. Within the industry, employment in food services and drinking places rose by 60,000 in September. Employment in leisure and hospitality is below its pre-pandemic February 2020 level by 1.1 million, or 6.7 percent.
- In September, employment in health care rose by 60,000 and has returned to its February 2020 level. Over the month, ambulatory health care services and hospitals each added 28,000 jobs.
- Employment in professional and business services continued its upward trend in September (+46,000). Thus far in 2022, job growth in the industry has averaged 72,000 per month. Employment in temporary help services continued to trend up (+27,000) in September. Job gains occurred in investigation and security services (+9,000) and in scientific research and development services (+5,000). Job losses occurred in business support services (-12,000), legal services (-5,000), and advertising and related services (-5,000).
- Manufacturing employment continued to trend up in September (+22,000). Job gains occurred in motor vehicles and parts (+8,000), fabricated metal products (+6,000), and electrical equipment and appliances (+3,000). Printing and related support activities lost 4,000 jobs over the month. Manufacturing has added an average of 36,000 jobs per month thus far in 2022.
- In September, employment in construction continued to trend up (+19,000), in line with average monthly job growth in the first 8 months of this year. Specialty trade contractors added 18,000 jobs in September.
- Employment in wholesale trade continued its upward trend in September (+11,000). Wholesale trade has added an average of 18,000 jobs per month thus far in 2022.
- In September, employment in financial activities changed little (-8,000), as declines in insurance carriers and related activities (-9,000) and nondepository credit intermediation (-7,000) were partially offset by a job gain in depository credit intermediation (+5,000).
- Employment in transportation and warehousing was little changed in September (-8,000). A loss of 11,000 jobs in truck transportation was partially offset by a gain of 3,000 jobs in air transportation.
- Employment showed little change over the month in other major industries, including mining, retail trade, information, other services, and government.
Hurricane Ian had no discernible effect on the employment and unemployment data for September. Household survey data collection was completed before the storm made landfall in Florida, and establishment survey data collection rates were within normal ranges nationally and for the affected areas.
Source: Bureau of Labor and Statistics, THE EMPLOYMENT SITUATION — September 2022