The September jobs report does not look impressive with less than expected new jobs coming in at 134,000. However, the impressive number was the 3.7% unemployment rate which has not been seen since 1969. Maybe the low number of jobs can be blamed on Hurricane Florence but we will have to wait for next month’s report to tell us.
One thing this new unemployment number does do is give the Federal Reserve plenty of reason to keep increasing the interest rates and with yesterday’s spike in the 10 year bond yield it is very likely that we will see higher mortgage rates in the future. That will add to the already weakening housing market. The Fed does not see that as a problem for the economy, at least not yet.
Next month the unemployment rate may fall further as retailers hire for the holidays and the east coast recovers from the interruption and damage left by Florence.