Delayed September jobs report shows manufacturing lost some jobs in September

The latest Employment Situation from the Bureau of Labor Statistics, delayed significantly by the government shutdown, shows manufacturing continued to lose jobs in August and September, though at a lesser rate. The newest report shows U.S. production of durable and nondurable goods together lost an estimated net 6,000 jobs in September.

The loss in manufacturing jobs is in notable contrast to the overall nonfarm economy, which beat expectations of about 50,000 jobs and a slight dip in jobs in August to add a net 119,000 jobs. Health care, food and beverage service and social assistance roles saw significant increased employment, though transportation and warehousing businesses lost an estimated 25,000 jobs.

While the unemployment rate rose slightly, from 4.3% to 4.4%, this notably reflected an increase among participants in the workforce, BLS reported.

Manufacturing job losses in September were largely less than those suffered in August. The 6,000 loss in September manufacturing jobs is on top of August’s loss of 15,000 jobs, a steeper loss than the 12,000 initially estimated. The larger durable-goods sector lost 21,000 jobs in August and 4,000 more in September; the automotive sector specifically lost an estimated 8,600 jobs in August and 1,200 in September. Nondurable goods manufacturing, which shed 12,000 jobs in July, recovered 6,000 in August but lost 2,000 in September.

What people are saying

“Driven by impressive gains in private sector payrolls, our economy added 119,000 jobs in September – more than doubling expectations,” said Secretary of Labor Lori Chavez-DeRemer. “Job and yearly wage growth blew past expectations, more Americans are entering the workforce, and long-term unemployment is down. This report reflects an economy that was running strong going into the shutdown.”

“The industry mix of job growth was consistent with trends for the past year. Healthcare gained 42,000 jobs, with gains in other in-person industries like food services and social assistance. Employment declined in transportation and warehousing by 25,000. The federal government shed jobs. Manufacturing is consistently declining, as are traditional white-collar jobs (such as professional and business services),” wrote Appcast Chief Economist Andrew Flowers.