Payrolls Headline Miss May not Signal a Weak Labor Market

Dow Jones
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0917 ET - U.S. payroll gains missed expectations in September, but economists say the economy doesn't need to add as many jobs as it once did to keep the labor market stable. The labor market will continue to have soft numbers from time to time because of two constraints on labor supply: demographics and tight immigration policy, said Joe Brusuelas, chief economist at RSM. "We need to generate 35,000 jobs a month to keep the American labor market stable. So, if we're adding 29,000, that's in line with that," Brusuelas tells WSJ. Going forward, we should continue to expect job gains in that monthly range of around 50,000, he adds.

 

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