Concerns That Slowed Sept. Hiring Likely To Linger
By CHRISTOPHER S. RUGABER
WASHINGTON (AP) â¿¿ The uncertainty and weakness that hung over the U.S. job market in September before the government shut down aren't going away.
Employers will likely remain slow to hire as long as the economy struggles to accelerate, consumers limit their spending and Congress keeps putting off a resolution to a budget fight that will resurface early next year.
Just a few months ago, many economists predicted that hiring would pick up by year's end as the effects of tax increases and government spending cuts that kicked in this year faded.No longer. The September jobs report made clear that hiring isn't strengthening. It's slowing. Employers last month added 148,000 jobs, a steep drop from the 193,000 gained in August. From January through March, job growth averaged 207,000 jobs a month. For April through June, the average was 182,000. For July through September, it was just 143,000. "We had assumed that the headwinds would dissipate, but in fact they didn't," says Doug Handler, an economist at IHS Global Insight. What's more, the 16-day partial shutdown of the government, which began Oct. 1, will likely further depress hiring for October. That's because government contractors and other companies affected by the shutdown imposed temporary layoffs. And the budget battles that led to the shutdown are likely to flare up later this year and in early 2014. Last week, Congress agreed to keep the government running only until Jan. 15 while President Barack Obama and Congress seek a broader budget agreement. In the meantime, uncertainty about another budget impasse â¿¿ and potentially another government shutdown â¿¿ may cause some businesses to hold off on hiring or expanding. "Companies are not feeling confident enough to expand, to hire, to invest," said Yelena Shulyatyeva, an economist at BNP Paribas. "They're just sitting on the sidelines, being cautious, and watching all these headlines from Washington."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV