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Transmission of material in this statement is embargoed until
8:30 a.m. (ET) Friday, October 8, 2021.
Statement of
William W. Beach
Commissioner
Bureau of Labor Statistics
Friday, October 8, 2021
Nonfarm payroll employment rose by 194,000 in September,
and the unemployment rate fell by 0.4 percentage point to 4.8
percent. Notable job gains occurred in leisure and hospitality,
in professional and business services, in retail trade, and in
transportation and warehousing. Employment declined in public
education over the month.
Thus far this year, monthly job growth has averaged
561,000. Employment has increased by 17.4 million since April
2020 but is down by 5.0 million, or 3.3 percent, from its level
before the onset of the coronavirus (COVID-19) pandemic in
February 2020.
Employment in leisure and hospitality rose by 74,000 in
September, after changing little in August. Arts, entertainment,
and recreation added 43,000 jobs in September. Employment in
food services and drinking places changed little for the second
consecutive month, following an average monthly gain of 197,000
from January through July. Employment in leisure and hospitality
is 1.6 million, or 9.4 percent, lower than in February 2020.
In September, employment in professional and business
services rose by 60,000. Within the industry, employment in the
professional and technical component rose by 56,000 over the
month and is 244,000 higher than in February 2020. (Professional
and technical services includes industries such as architectural
and engineering services, management and technical consulting
services, and computer systems design and related services.) By
contrast, employment in the administrative and waste services
component (which includes temporary help services) changed
little over the month (+2,000) but is 543,000 lower than in
February 2020. Employment in the management of companies and
enterprises component was also little changed over the month
(+3,000) but is down by 86,000 since February 2020. Employment
in professional and business services overall is down by 385,000
since February 2020.
Employment in retail trade rose by 56,000 over the month,
after changing little in the prior 2 months. In September, job
gains occurred in clothing and accessories stores (+27,000),
general merchandise stores (+16,000), and building material and
garden supply stores (+16,000), while food and beverage stores
continued to lose jobs (-12,000). Since February 2020,
employment in retail trade is down by 202,000.
Transportation and warehousing added 47,000 jobs in
September. Employment in the industry is 72,000 above its
February 2020 level. In September, employment growth continued
in warehousing and storage (+16,000), couriers and messengers
(+13,000), and air transportation (+10,000).
Employment in information rose by 32,000 in September, with
job gains in motion picture and sound recording (+14,000); in
publishing industries, except Internet (+11,000); and in data
processing, hosting, and related services (+6,000). Employment
in information is 108,000 lower than in February 2020.
In September, employment in social assistance increased by
30,000, with much of the gain occurring in child day care
services (+18,000). Since February 2020, employment in social
assistance is down by 204,000.
Manufacturing added 26,000 jobs in September, with gains in
fabricated metal products (+8,000), machinery (+6,000), and
printing and related support activities (+4,000). Motor vehicles
and parts lost 6,000 jobs over the month. Since February 2020,
employment in manufacturing is down by 353,000.
In September, construction added 22,000 jobs. Employment in
the industry has changed little, on net, thus far this year and
is 201,000 lower than in February 2020.
Employment in wholesale trade increased by 17,000 in
September, with nearly all of the gain in the durable goods
component. Wholesale trade employment is 159,000 lower than in
February 2020.
Mining employment continued to trend up in September
(+5,000), reflecting growth in support activities for mining
(+4,000). Mining has added 59,000 jobs since a trough in August
2020, but employment is 93,000 lower than a peak in January
2019.
In September, employment decreased by 144,000 in local
government education and by 17,000 in state government
education. Employment changed little in private education
(-19,000). Most back-to-school hiring typically occurs in
September. Hiring this September was lower than usual, resulting
in a decline after seasonal adjustment. Recent employment
changes are challenging to interpret, as pandemic-related
staffing fluctuations in public and private education have
distorted the normal seasonal hiring and layoff patterns. Since
February 2020, employment is down by 310,000 in local government
education, by 194,000 in state government education, and by
172,000 in private education.
In September, employment changed little in health care
(-18,000). A job gain in ambulatory health care services
(+28,000) was more than offset by job losses in nursing and
residential care facilities (-38,000) and hospitals (-8,000).
Health care employment is 524,000 lower than in February 2020,
mostly due to declines in nursing and residential care
facilities.
Employment in financial activities and in other services
showed little change over the month.
In September, the average workweek for all private-sector
workers rose by 0.2 hour to 34.8 hours. The average workweek for
manufacturing was unchanged at 40.4 hours.
Average hourly earnings of all employees on private nonfarm
payrolls increased by 19 cents to $30.85 in September, following
large increases in the prior 5 months. The data for recent
months suggest that rising demand for labor associated with the
recovery from the pandemic may have put upward pressure on
wages. However, because average hourly earnings vary widely
across industries, the large employment fluctuations since
February 2020 complicate the analysis of trends in average
hourly earnings.
Turning to the labor market indicators from the household
survey, the unemployment rate fell by 0.4 percentage point to
4.8 percent in September. The number of unemployed people fell
by 710,000 to 7.7 million. These measures are down from their
April 2020 peaks but remain above their February 2020 levels
(3.5 percent and 5.7 million, respectively).
Among the major worker groups, the unemployment rates
decreased in September for adult men (4.7 percent), adult women
(4.2 percent), Whites (4.2 percent), and Blacks (7.9 percent).
The jobless rates for teenagers (11.5 percent), Asians (4.2
percent), and Hispanics (6.3 percent) showed little change over
the month.
Among the unemployed, the number of permanent job losers
declined by 236,000 to 2.3 million in September but is 953,000
higher than in February 2020. The number of people on temporary
layoff, at 1.1 million, changed little in September. This
measure is down considerably from a high of 18.0 million in
April 2020 but is 374,000 higher than in February 2020. The
number of reentrants to the labor force decreased by 198,000 to
2.3 million in September, after increasing by a similar amount
in August.
The number of people unemployed for 27 weeks or more (often
referred to as the long-term unemployed) continued to decrease,
falling by 496,000 to 2.7 million in September. This measure is
up by 1.6 million since February 2020. In September, the long-
term unemployed accounted for 34.5 percent of the total
unemployed. The number of people unemployed for less than 5
weeks, at 2.2 million, was little changed.
The labor force participation rate, at 61.6 percent,
changed little in September and has remained within a narrow
range of 61.4 percent to 61.7 percent since June 2020. This
measure is 1.7 percentage points lower than in February 2020.
The employment-population ratio edged up to 58.7 percent in
September but is 2.4 percentage points lower than in February
2020.
In September, 4.5 million people were working part time for
economic reasons, essentially unchanged for the second month in
a row. The number of people working part time for economic
reasons is down from a peak of 10.9 million in April 2020. There
were 4.4 million people affected by this type of underemployment
in February 2020.
The number of people not in the labor force who currently
want a job was little changed at 6.0 million in September. This
measure is down from a peak of 9.9 million in April 2020 but
remains higher than the February 2020 level (5.0 million). Among
those not in the labor force who wanted a job, the number of
people marginally attached to the labor force edged up by
167,000 to 1.7 million in September, following a decline in the
prior month. (People who are marginally attached to the labor
force had not actively looked for work in the 4 weeks prior to
the survey but wanted a job, were available for work, and had
looked for a job within the last 12 months.) The number of
discouraged workers, a subset of the marginally attached who
believed that no jobs were available for them, was little
changed in September at 450,000.
As in previous months, some workers affected by the
pandemic who should have been classified as unemployed on
temporary layoff in September were instead misclassified as
employed but not at work. Since March 2020, BLS has published an
estimate of what the unemployment rate would have been had
misclassified workers been included among the unemployed.
Repeating this same approach, the seasonally adjusted September
unemployment rate would have been 0.1 percentage point higher
than reported. Additional information about the
misclassification, as well as information about response rates
for both the household and establishment surveys, is available
on the BLS website at www.bls.gov/covid19/employment-situation-
covid19-faq-september-2021.htm.
Looking at supplemental pandemic-related measures from the
household survey (these supplemental data are not seasonally
adjusted), the share of employed people who teleworked in
September because of the coronavirus pandemic was 13.2 percent,
little changed from August. These data refer only to employed
people who teleworked or worked from home for pay at some point
in the last 4 weeks specifically because of the pandemic; they
do not include all instances of telework.
In September, the number of people who reported that they
had been unable to work because their employer closed or lost
business due to the pandemic--that is, they did not work at all
or worked fewer hours at some point in the last 4 weeks due to
the pandemic--decreased by 615,000 to 5.0 million. Among those
who reported in September that they were unable to work because
of pandemic-related closures or lost business, 15.5 percent
received at least some pay from their employer for the hours not
worked, little changed over the month.
Among those not in the labor force in September, 1.6
million people were prevented from looking for work due to the
pandemic, little changed from August. (To be counted as
unemployed, by definition, individuals must either be actively
searching for work or on temporary layoff.)
In summary, nonfarm payroll employment rose by 194,000 in
September, and the unemployment rate declined to 4.8 percent.