U.S. job growth probably slowed further in September as Hurricanes Harvey and Irma left displaced workers temporarily unemployed and delayed hiring, the latest indication that the storms undercut economic activity in the third quarter.
According to a Reuters survey of economists, the Labor Department’s closely watched employment report on Friday will likely show that nonfarm payrolls increased by 90,000jobs last month after rising by 156,000 in August.
The projected job gains for September would be the second smallest this year and well below the 175,000 monthly average for the 12 months through August. They would follow on the heels of August’s disappointing employment growth, which economists blamed on a seasonal quirk.
Economists estimate that Harvey and Irma, which wreaked havoc in Texas and Florida, cut as many as 125,000 jobs from payrolls in September.
“We are going to get a lot of the jobs back and we are going to see hiring related to the clean-up and rebuilding into early 2018 as well,” said Ryan Sweet, senior economist at Moody’s Analytics in West Chester, Pennsylvania.
Economists say a weak employment report should not change views the Federal Reserve will raise interest rates in December. Fed Chair Janet Yellen cautioned last month that the hurricanes could “substantially” weigh on September job growth, but expected the effects would “unwind relatively quickly.
Reference: Reuters
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