Despite the unemployment rate falling to 4.2%, the economy lost 33,000 jobs etching the first decline since 2010 just as the United States began to dig out from the recession. The reason for the decline, Hurricanes Irma, and Harvey according to Bureau of Labor Statistics (BLS).
Analysts commented that as many as 1.5 million people were out of jobs – the highest figure in last 20 years. The worst affected sector was the restaurant industry where as many as 105,000 people lost jobs. Meanwhile, the government raised its estimates on job openings in the month of August to 169,000 from 156,000 initially.
Economists commented that the U.S. economy has been expanding for the last eight years and this growth has now begun to somewhat slow down. This may also one of the primary reasons behind the loss of jobs. However, many also believe that the hiring would spring back to normal in October as the job openings are at a record high in the United States.
The unemployment rate decreased to 4.2% in September, the lowest level since 2000 and the report by BLS stated that this was not affected by the hurricanes.
Let’s see what happens in October.