Unemployment Rate Hits New 50-Year Low After 136k Jobs Added in Sept.

US-ECONOMY-NYSE

The economy added just 136,000 jobs in September, below economists' predictions, but it was good enough to bring the unemployment rate down to a new 50-year-old of 3.5%, the Labor Department reported on Friday.

The unemployment rate fell from 3.7% to 3.5% in September, which is the lowest since December 1969, according to the release.

The tepid jobs report is below the 145,000 jobs added, which is what economists had predicted for September, according to a Bloomberg survey, which could lead the Federal Reserve to cut rates again when they meet later this month. The Fed has already cut rates twice this year since late July in an effort to boost the economy and stave off a possible recession as the global economy slows.

Also in the report: the jobs numbers for August and July were revised upward by 45,000 with July showing 166,000 jobs added and August adding 168,000. However, there was bad news for workers as average wages fell to 2.9% overall, according to the government's monthly figures. The monthly average for 2019 has fallen below last year's pace of 223,000 jobs added every month, which has investors on edge after a tough week on Wall Street saw all three major indices decline.

The service sector, which makes up the largest part of the American economy (up to 80%), saw its slowest growth in three years with business owners placing blame on tariffs increasing prices, a shortage of qualified workers and the overall direction of the economy.

President Donald Trump took to Twitter to celebrate the jobs numbers, connecting it to the recent impeachment inquiry that was launched against him by Democrats in the House.

"Breaking News: Unemployment Rate, at 3.5%, drops to a 50 YEAR LOW. Wow America, lets impeach your President (even though he did nothing wrong!)." Trump tweeted Friday morning.

 

Photo: Getty Images

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