Joe Biden Gets Unemployment Boost as More People in Work Than Expected

The U.S. unemployment rate dropped from 3.7 percent to 3.5 percent in September, giving a political boost to President Joe Biden weeks before the midterm elections.

The number of unemployed edged down to a seasonally adjusted 5.8 million in September from 6 million in August, the U.S. Bureau of Labor Statistics said on Friday.

Employers in the U.S. added 263,000 jobs in September, with Hurricane Ian, which hit Florida towards the end of the month, having no discernible effect on the employment data so far, it said.

The pace of job creation slowed from August, when the economy added 315,000 jobs and from July, when it added a huge 526,000 new jobs.

The unemployment rate has dropped quite sharply from 4.7 percent in September 2021 in a sign that the U.S. workforce is continuing to recover following the COVID pandemic.

The low jobless rate will give a boost to Biden and the Democratic Party ahead of the crucial midterm elections in November.

However, this could add to pressures on inflation, as lower unemployment means people spend more, and can ultimately lead to more pressure on everyday prices.

Over the past year, average hourly earnings increased by 5 percent. Average hourly earnings for all employees on private non-farm payrolls rose by 10 cents to $32.46, with average hourly earnings of private-sector production and nonsupervisory employees rising by 10 cents to $27.77.

The number of permanent job losers among the unemployed dropped by 173,000 to 1.2 million in September with the number of people on temporary layoff remaining at around at 758,000.

Meanwhile, the number of long-term unemployed for 27 weeks or longer was little changed at 1.1 million in September and accounted for 18.5 percent of all unemployed persons.

In September, 5.2 percent of employed people worked from home due to the coronavirus pandemic, down from 6.5 percent in the prior month.

This figure has continued to fall following the pandemic, as in May 2020, the first month these data were collected, 35.4 percent of employed persons teleworked.

The leisure and hospitality industry added 83,000 jobs in September, which was in line with the average monthly job gain over the first eight months of the year.

Employment in food services and drinking places rose by 60,000 in though is still below its pre-pandemic February 2020 level by around 1.1 million, or 6.7 percent.

In September, employment in health care rose by 60,000 and has returned to its February 2020 level.

Meanwhile, employment in professional businesses, manufacturing, and construction continued to rise, whereas employment for financial services, legal, and transportation saw slight declines.