US employment Report- October 2, 2015

US employment rose by 142,000 jobs in September, a relatively disappointing result given that job growth has averaged 200,000 jobs per month over the past year.  The US unemployment rate held steady at 5.1 per cent while wages actually dipped slightly.

This is the final jobs report before the US Federal Reserve meets in October to decide on interest rates. With the modest setback in job gains and absent any significant wage pressure, it is very unlikely that the Fed will opt to raise rates at its next meeting. However, US policymakers seem determined to move rates off the zero-lower bound soon. Therefore, disappointing jobs data for September will shift focus to the December Fed meeting and all incoming data leading up to it. 

For more information, please contact:  Gino Pezzani.

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