Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Employers add fewer jobs

Wednesday, October 02, 2013 - 01:35

Oct. 2 - U.S. private employers added 166,000 jobs in September, lower than economists' expectations. Fred Katayama reports.

▲ Hide Transcript

View Transcript

TV AND WEB RESTRICTIONS****~ Amid the Washington shut down that furloughed nearly a million government workers, the private sector isn't doing much better. U.S. companies added just 166,000 jobs last month, fewer than economists had expected. And payrolls processor ADP said the job gains in August turned out to be fewer than it initially reported. This ADP report is getting unusually close scrutiny because it has become THE DEFACTO jobs report. The most widely watched stat by the markets - the Labor Department's monthly employment report - will likely not come out this Friday due to the government shut down. So investors are making do with the ADP report, which tends to overestimate the Labor Department's figures a bit. Analysts say the softer numbers renew Wall Street's worries that the economic recovery could begin to peter out and slow growth in corporate earnings. Everbank Wealth Management's senior market strategist Chris Gaffney said, "It basically says that the stimulus will continue. The government shut down will be a negative impact on the U.S. economy, extending the need for additional stimulus." And bond investors are betting that the Federal Reserve won't begin to taper its big bond purchases right away. They extended the Treasury rally, pushing 10-year yields down nearly 4 basis points from Tuesday. And stocks sold off at the open. Before the job numbers came out, the bond king, PIMCO's Bill Gross, said in a letter he doesn't see the Fed hiking interest rates before 2016 at earliest. He says the global economy will face low interest rates for decades.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Employers add fewer jobs

Wednesday, October 02, 2013 - 01:35