33,000 jobs lost...

Economy lost 33,000 jobs in September

The net decline is likely attributable to late-summer hurricanes.

By MARIANNE LEVINE

The economy lost jobs in September for the first time in seven years.

The Labor Department reported Friday morning that the economy lost 33,000 jobs, down from 169,000 jobs added in August.

The net decline is likely attributable to late-summer hurricanes. Prior to the jobs report, the Bureau of Labor Statistics said Hurricane Harvey in Texas and Hurricane Irma in Florida could have “direct and indirect effects on employment, hours, and earnings.” The monthly jobs figure does not include jobs numbers for Puerto Rico, which is still struggling to recover from Hurricane Maria.

“In the midst of a hurricane, nobody is hiring,” said Megan Greene, chief economist at Manulife Asset Management.

In a statement, William Wiatrowski, the acting commissioner for the Bureau of Labor Statistics, explained that during the survey week, which includes the 12th of the month, "many employees in areas affected by the hurricanes were likely off payrolls."

Trump appeared Thursday to be trying to get out in front of Friday's jobs report, which analysts predicted would show a slowdown, when he tweeted: "Stock market hits an ALL-TIME high! Unemployment lowest in 16 years! Business and manufacturing enthusiasm at highest level in decades!” Trump's "lowest in 16 years" claim reached back to the unemployment number for July, when it was 4.3 percent. In August unemployment ticked up to 4.4 percent.

The jobs report did include some positive news. September unemployment, the report showed, was 4.2 percent, down from August’s 4.4 percent, and the lowest level since February 2001.

"We do not believe the hurricanes had a discernible effect on the national unemployment rate," Wiatrowski said in his statement.

Average hourly private-sector earnings rose 2.9 percent in September over the previous year, the largest increase since December 2016. In August, they were up 2.7 percent.

The unfavorable jobs report comes as Trump prepares to nominate a Federal Reserve chair. Last week, Trump said he would make a decision in the next “two or three weeks.”

Labor force participation was 63.1 percent, up from August's 62.9 percent and the highest level since March 2014.