While overall job gains softened in September, non-farm employment rebounded to pre-pandemic levels from August, up 263,000 from 315,000, with the biggest gains in healthcare, leisure and hospitality, according to a Friday (Oct. 7) report from the U.S. Bureau of Labor Statistics.
The unemployment rate fell to 3.5% returning to its July level, with the total number of those unemployed edging down to 5.8 million in September.
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Healthcare employment is back to pre-pandemic levels, up by 60,000 and returning to its February pre-pandemic 2020 level. Ambulatory healthcare services and hospitals each added 28,000 jobs in September.
The job market has posted continuing monthly gains this year averaging more than 400,000 despite a shrinking economy, soaring inflation and aggressive interest rate hikes.
“Companies still don’t want to lose the talent — especially talent with tech skills — that they’ve worked so hard to win,” Nicola Hancock, managing director of the Americas region for AMS, talent acquisition and advisory firm, told USA Today.
“Even though the U.S. economy is contracting, we are still experiencing the most painful skills shortage we’ve seen in our history,” Hancock said.
Widespread worker shortages prompted many companies to hold back on layoffs and even push ahead with hiring plans to avoid being short-handed when activity rebounds.
Chicago Fed President Charles Evans said on Thursday (Oct. 6) that the Fed’s policy rate is likely headed to go between 4.5% to 4.75% by the spring of 2023 in a move to boost borrowing costs to bring down inflation.
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