By — Kristen Doerer Kristen Doerer Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/modest-labor-gains-september-shows-economy-chugging-along Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Modest labor gains in September show economy chugging along Economy Oct 7, 2016 12:17 PM EDT The U.S. economy added 156,000 jobs in September, and the unemployment rate ticked up to 5 percent. While job growth slowed in 2016, it has by no means stopped. Over the year, the U.S. economy added an average of 178,000 jobs per month. In 2015, job growth averaged 229,000. As economist Justin Wolfers reminds us, this is the 72nd month of consecutive job growth. IT'S A NEW RECORD: 72 STRAIGHT MONTHS OF JOBS GROWTH.(Previous record: 48 months) — Justin Wolfers (@JustinWolfers) October 7, 2016 The unemployment rate increased due to more people entering the workforce. The labor force participation rate, which is historically low, increased one-tenth of a percentage point to 62.9 percent. The really healthy part of this jobs report is that people are returning to the workforce, and the labor force grew +444k last month. — Justin Wolfers (@JustinWolfers) October 7, 2016 Small rise in the unemployment rate reflects an increase in labor force participation-more people entering the labor market is a good thing. — Elise Gould (@eliselgould) October 7, 2016 Jared Bernstein, former chief economist to Vice President Joe Biden, pointed out that the increase in the unemployment rate was actually quite small — from 4.92 percent to 4.96 percent, which is “statistically indistinguishable from no increase at all.” The Bureau of Labor Statistics’ measure of underemployment and unemployment, the U-6, remained unchanged at 9.7 percent. Our more inclusive Solman Scale U-7, which, in addition to the officially unemployed, also includes part-time workers for economic reasons and anyone who wants a job, no matter the last time they looked, was also unchanged at 11.9 percent. Wages continued to increase in September. Following a 2-cent gain in August, average hourly earnings increased 6 cents. This follows the good news in the Census Bureau’s annual poverty report, which showed that median household income rose by 5.2 percent in 2015 — the first annual increase since 2007. So what’s the bottom line? “Goldilocks is real: the labor market is not too hot and not too cold,” wrote Douglas Holtz-Eakin of the Republican American Action Forum, pointing to healthy job growth and annual hourly earnings nearing 2 percent. Justin Wolfers’ takeaway was a bit less enthusiastic: Joe's right. Meh. Very meh. Close to expectations. A tad below. But the economy is still motoring along. https://t.co/ViwhI9aWp2 — Justin Wolfers (@JustinWolfers) October 7, 2016 The recovery continues — now if only it could pick up some steam. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now By — Kristen Doerer Kristen Doerer Kristen Doerer is the digital reporter-producer for PBS NewsHour’s Making Sen$e. @k2doe
The U.S. economy added 156,000 jobs in September, and the unemployment rate ticked up to 5 percent. While job growth slowed in 2016, it has by no means stopped. Over the year, the U.S. economy added an average of 178,000 jobs per month. In 2015, job growth averaged 229,000. As economist Justin Wolfers reminds us, this is the 72nd month of consecutive job growth. IT'S A NEW RECORD: 72 STRAIGHT MONTHS OF JOBS GROWTH.(Previous record: 48 months) — Justin Wolfers (@JustinWolfers) October 7, 2016 The unemployment rate increased due to more people entering the workforce. The labor force participation rate, which is historically low, increased one-tenth of a percentage point to 62.9 percent. The really healthy part of this jobs report is that people are returning to the workforce, and the labor force grew +444k last month. — Justin Wolfers (@JustinWolfers) October 7, 2016 Small rise in the unemployment rate reflects an increase in labor force participation-more people entering the labor market is a good thing. — Elise Gould (@eliselgould) October 7, 2016 Jared Bernstein, former chief economist to Vice President Joe Biden, pointed out that the increase in the unemployment rate was actually quite small — from 4.92 percent to 4.96 percent, which is “statistically indistinguishable from no increase at all.” The Bureau of Labor Statistics’ measure of underemployment and unemployment, the U-6, remained unchanged at 9.7 percent. Our more inclusive Solman Scale U-7, which, in addition to the officially unemployed, also includes part-time workers for economic reasons and anyone who wants a job, no matter the last time they looked, was also unchanged at 11.9 percent. Wages continued to increase in September. Following a 2-cent gain in August, average hourly earnings increased 6 cents. This follows the good news in the Census Bureau’s annual poverty report, which showed that median household income rose by 5.2 percent in 2015 — the first annual increase since 2007. So what’s the bottom line? “Goldilocks is real: the labor market is not too hot and not too cold,” wrote Douglas Holtz-Eakin of the Republican American Action Forum, pointing to healthy job growth and annual hourly earnings nearing 2 percent. Justin Wolfers’ takeaway was a bit less enthusiastic: Joe's right. Meh. Very meh. Close to expectations. A tad below. But the economy is still motoring along. https://t.co/ViwhI9aWp2 — Justin Wolfers (@JustinWolfers) October 7, 2016 The recovery continues — now if only it could pick up some steam. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now