This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

September Jobs Report: What to Expect

NEW YORK ( TheStreet) -- Investors looking forward to exciting news from the September non-farm payrolls report on Friday may be disappointed. Most economists and analysts are expecting a performance similar to what happened last month with the private sector showing modest growth.

Private sector payrolls are expected to increase by 74,000, according to consensus estimates from Briefing.co,m after rising 67,000 in August. Estimates from economists polled by TheStreet ranged between an increase of 60,000 to 100,000. The overall unemployment rate is expected to tick up to 9.7% from 9.6%, though some experts do not rule out a higher rate as previously discouraged workers re-enter the workforce.

The market has been struggling for direction in recent days as the latest economic reports have sent conflicting signals on what to expect on the employment front.

On Wednesday, the ADP National Employment Report showed private sector jobs fell 39,000 against a projected increase of 18,000. . That was more or less in line with a Challenger Gray & Christmas report that showed September layoffs increased by 7% to 37,151.

On Thursday, the Labor Department said initial claims for the week ended Oct. 2 showed a surprise drop to 445,000 from 456,000 a week earlier.

Earlier in the week, the ISM nonmanufacturing data showed an improvement in both the index of new orders and employment, boosting hopes for more hiring in the sector that provides the most jobs in the economy.

However, the numbers did not provide a strong-enough signal, according to Brian Bethune of Global Insight. "I would like to see the services employment index go up higher," he said.

The lack of strong signals has led to largely modest expectations from the jobs report. Analysts expect the service sector to continue hiring, while the manufacturing sector is expected to show a slowdown. Construction will continue to be weak and would likely record a decline.

More job cuts may also be in store at the state and local level with the impact of the Census hiring fading away.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs