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October 05, 2018 02:00 AM

U.S. gains 134,000 jobs in September; unemployment rate drops

Tire Business Staff
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    WASHINGTON — Nonfarm payroll employment rose by 134,000 jobs in September 2018, compared with an average of 201,000 per month over the last 12 months, according to the latest figures from the Bureau of Labor Statistics.

    Also in September, the national unemployment rate fell to 3.7 percent from the previous 3.9, the BLS said in its monthly report issued Oct. 5.

    Manufacturing continued to add jobs, with 18,000 new positions in September. The rise represents a gain in durable goods manufacturing, according to the report.

    There were even greater job gains in professional and business services (up 54,000), health care (up 26,000), transportation and warehousing (up 24,000), and construction (up 21,000), according to the BLS.

    Leisure and hospitality lost 17,000 jobs, most likely because of Hurricane Florence, the report said. Wholesale and retail trade saw little change in employment, and mining gained only 6,000 jobs, it said.

    Payroll services firm ADP Inc. said U.S. private sector employment increased by 230,000 jobs in September.

    The greatest gains were in medium-sized businesses (50 to 499 employees), with 99,000 new jobs, according to the ADP report issued Oct. 3. Large businesses (500 employees and up) grew by 75,000 jobs, while small businesses (one to 49 employees) gained 56,000, ADP said.

    Goods-producing industries grew by 46,000 jobs for the month, including 7,000 in manufacturing, 34,000 in construction and 5,000 in natural resources/mining, according to ADP. Service-providing sectors added 184,000 jobs, including 70,000 in professional/business services and 30,000 in trade/transportation/warehousing, it said.

    Franchise employment fell by 5,700 jobs in September, but employment in auto parts stores and auto dealerships grew by 3,200, ADP said.

    Small businesses continued to be bullish about hiring, with a record 37 percent raising compensation in hope of hiring and retaining employees, according to the September jobs report from the National Federation of Independent Business (NFIB).

    "The lack of qualified workers is having an effect, and owners are raising compensation to attract the right workers," said NFIB Chief Economist William Dunkelberg. "Hopefully this will also induce more individuals to enter or re-enter the labor force."

    Scott Paul, president of the Alliance for American Manufacturing, noted that the BLS figures came out on Manufacturing Day, a day celebrating all Americans who work in manufacturing.

    "(This is) a good time to reflect that while the Trump administration needs to move forward much more strategically to achieve real changes with our trading partners, the tariffs it has put in place still provide leverage rather than any real risk to factory jobs and the overall economy," Mr. Paul said.

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