CNNMoney reported that the U.S. economy only added 142,000 jobs in September and the number of jobs created in July and August were revised down. Economists surveyed by CNNMoney predicted there would be 204,000 jobs gained in the month. With the disappointing report, the unemployment rate stayed at 5.1%, its lowest level in seven years.
The weak September jobs report could be a sign that slowing global economic growth is beginning to hurt the U.S. job market. At least one large U.S. company — Caterpillar — cited the global slowdown for announcing 10,000 job cuts over the next few years.
Uncertainty abroad can also cause employers in America to hesitate on new hires.
“When there’s uncertainty people just wait and see,” says Joe Huddle, managing partner at DHR International. Huddle cautions against reading into too much into one jobs report and argues that September could just be a “blip.”
Overall, the September jobs report raises questions about the U.S. economy’s momentum heading into the end of the year. Last year, 2014, was America’s best year of job gains since 1999. Between January and September last year the economy gained 238,000 jobs a month on average. This year, its 198,000.