As many as 800,000 federal workers were furloughed during last month's
government shutdown. The Labor Department, in its survey of 60,000
households, extrapolated the effects of the impasse to arrive at the
unemployment rate.All of a sudden, the American economy is looking very
resilient ― much more so than experts had thought.Despite forecasts that
job growth would be sapped by the budget impasse and government
shutdown, employers in the U.S. stepped up their hiring last month by
adding 204,000 new jobs across a wide spectrum of industries.The
increase in payrolls was almost double what many analysts were
predicting and alligator shear
immediately triggered speculation that the Federal Reserve would be
more prone to start reducing its large bond-buying stimulus program next
month.
The Labor Department's report Friday also made substantial upward
revisions to job growth for the prior two months, to 163,000 in
September and 238,000 in August.Taken together, the data over the last
three months indicate that the American job-creation machine is not
sputtering,alligator shear
as some had feared, but is continuing to run at a fairly steady, if
moderate, speed.The unemployment rate, however, edged up to 7.3% last
month from 7.2% in September amid an unusually large drop in the total
number of people working or actively looking for jobs ― what economists
call the labor force.
That data injected a measure of skepticism to an otherwise optimistic
report, though analysts noted that survey calculations of the unemployed
and the labor force were complicated by the partial government
shutdown, which temporarily furloughed hundreds of thousands of
employees.The payroll numbers are based on a much larger,skin analyzer
separate sample of employers, not households, and thus are considered
more reliable and less volatile from month to month. Labor Department
officials said they saw no discernible effect on new jobs stemming from
the shutdown. The report counted federal workers on furlough as employed
because they were receiving back pay.
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