US nonfarm payrolls accelerated in September, but the unemployment rate rose, suggesting the labor market may remain weak.
TL;DR
U.S. nonfarm payrolls grew faster in September, but the unemployment rate increased and previous data was revised downward, indicating ongoing labor market weakness. AI and trade policies are contributing to reduced job demand and economic uncertainty.
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On November 20, U.S. nonfarm payrolls growth accelerated in September, but the unemployment rate rose to 4.4%, and the previous month's employment data was revised down to negative, indicating that the labor market remains weak. The U.S. Bureau of Labor Statistics said on Thursday that nonfarm payrolls increased by 119,000 in September, after August's figure was revised down to a decrease of 4,000. Economists polled by Reuters had previously predicted an increase of 50,000 in September, following an initial increase of 22,000 in August. Economists estimate that the economy currently only needs to create 30,000 to 50,000 jobs per month to support the growth of the working-age population, far below the level of approximately 150,000 needed by 2024.
The unemployment rate rose to 4.4% from 4.3% in August. The increasing prevalence of artificial intelligence is also eroding labor demand, with entry-level positions being hit hardest, leaving recent college graduates struggling to find jobs. Economists point out that artificial intelligence is driving jobless economic growth. Some also argue that the Trump administration's trade policies have created an uncertain economic environment, weakening the hiring capacity of businesses, especially small businesses. (Jinshi)