Credit Union National Association (CUNA) Senior Economist Dawit Kebede, PhD, issued the following statement in response to the Labor Department’s September jobs report:
“Following the Delta surge in August, various indicators started showing signs of improved economic activity. The September jobs report is weaker than expected, but the good news is that while hiring has remained stagnant, the unemployment rate declined to 4.8%.
“Small employment gains in the leisure and hospitality industry show, despite the declining trend of the Delta virus, people are still reluctant to resume in-person activities.
“For several members of the Federal Reserve, a stronger September jobs report would have met the employment test to start tapering asset purchases. However, declining unemployment rates could suffice for the Federal Reserve to start slowing down the purchase of Treasury and mortgage-backed securities as early as next month.”