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Disappointing Job Growth Continues into the Fall

Press release from the issuing company

Slow overall economic growth put a damper on job growth in the summer and continues to do so in the early fall. A gain of only 148,000 new jobs in September followed the disappointing increases of the past several months. The clear implication is that after increasing at a 2.5 percent annual rate in the second quarter, overall economic and job growth slowed to less than 2 percent in the third quarter. Why? Consumer demand remains constrained by household caution, business investment remains largely on hold, and the Federal Government continued to operate under sequestration, ahead of the budget showdown in October. In addition, with inflation very low, business is trying to limit increases in labor costs. In short, the demand isn’t there and the money to pay additional workers isn’t there. Both job and income growth remain stuck in neutral. Confidence and the willingness to spend, especially on long delayed plans, simply wasn’t there this summer and is not returning this autumn.

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