Employment drops in Sept. due to hurricanes' impact

WASHINGTON — Nonfarm payroll employment in September fell by 33,000 jobs, largely due to the effects of Hurricanes Harvey and Irma, according to the latest figures from the U.S. Bureau of Labor Statistics (BLS).

At the same time, the unemployment rate fell to 4.2 percent from August's 4.4 percent, the BLS said in its Oct. 6 release.

Employment in food services and drinking establishments tumbled by 105,000 jobs during the month, likely reflecting the effect of hurricanes in major urban areas and resorts, according to the agency.

The biggest job gains in September were in health care (up 23,000 jobs) and transportation and warehousing (up 22,000 jobs), the employment report said. Professional and business services gained 13,000 jobs during the month, and financial services grew by 10,000 jobs.

Manufacturing lost 1,000 jobs, while wholesale and retail trade, mining, construction, information and government saw little change, the BLS said.

As usual, the employment figures issued by payroll services firm ADP Inc. differed significantly from the government's.

Private sector employment increased by 135,000 jobs during September, according to the ADP report issued Oct. 4.

Large businesses (500 or more employees) had the biggest job gains with 79,000 new jobs, according to ADP. Medium-sized businesses (50 to 499 employees) added 63,000 jobs in September, but small businesses (one to 49 employees) lost 7,000 jobs, it said.

Manufacturing gained 18,000 jobs in September, according to the company, while leisure and hospitality — going completely against the BLS figures — added 20,000 jobs. The biggest job gainers were professional/business services (up 51,000 jobs), education/health services (up 29,000 jobs), and construction (up 29,000 jobs).

Small business hiring faltered in September, according to the monthly NFIB Jobs Report issued by the National Federation of Independent Business (NFIB).

"The tight labor market has been a very tough problem for small business owners, and last month it appears to have reduced employment for the first time in months," NFIB Chief Economist William Dunkelberg said.

Because small firms in six of nine U.S. regions reported reduced unemployment, the downturn in September can't be blamed on hurricanes, according to Mr. Dunkelberg.

"Small business owners are seeking workers to meet higher consumer demand, but they can't find people with the skills to fill the jobs," he said.

The Alliance for American Manufacturing (AAM) noted the September drop in manufacturing jobs on its website, and used that figure to urge its members to tell Congress to enact pro-manufacturing legislation.

"America's workforce can compete with anyone — as long as that competition is done on a level playing field," the AAM said.