Hurricanes Harvey and Irma extended their impact over the labor market in U.S. as well. The employment report for September revealed a shortage of 125,000 jobs in the aftermath of such natural calamities. As a consequence, job growth couldn’t expand further than the threshold of 100,000 new positions.
The Labor Market Might Regain Stability in December
The United States suffered this hurricane season record damages due to the influence of a double Category 4 strike. Before the publication of the employment report for September on Friday, there were significant fluctuations among expectations. Some experts were looking at a loss of 45,000 jobs while others were hopeful enough to see a gain of at least 150,000 entries.
These vast differences in prognoses underline a major divergence. It was difficult for authorities to comprehend the exact extent of the economic impact the two natural disasters inflicted in August and September.
On the other hand, economists believe that the Feds are not going to consider this September review. On the contrary, they will continue working on monetary policy without looking at this double strike on the economy. Therefore, the labor market might receive a more stable format when the interest rates are raised in December.
Goldman Sachs Valuated the Damages of the Two Category 4 Storms to $100 Billion
Going back to the report, the consensus found 90,000 new payrolls in September with a nonfarm background. The growth is down from 156,000 in August. Manufacturing is expected to receive 10,000 while the private sector might gain as much as 83,000 new payrolls.
So far, the year of 2017 wasn’t lucrative enough. The average job growth was of 176,000 per month. By comparison, 2016 recorded 187,000 new payrolls each month. Nonetheless, the unemployment rate might have stagnated at 4.4% in September while the hourly wages rose 0.3% on average.
Goldman Sachs released its own findings regarding the aftermath of the two hurricanes. Around 10% of the U.S. population experienced the side effects of these natural storms. As for the financial toll, the damages accounted for $100 billion.
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