US Labor Market Weakens as Black Unemployment Hits 7% in September

The US labor market is weakening, according to the latest employment report from the Bureau of Labor Statistics. In September, total nonfarm payroll employment increased by only 29,000 jobs, while the national unemployment rate edged up to 4.2 percent.

Revisions to prior months were also significant, with July's payroll growth revised from +21,000 to -10,000 and August's from +162,000 to +133,000. Combined, employment in these two months was 60,000 jobs lower than previously reported.

The most troubling development in the report was the increase in the Black unemployment rate from 6.0 percent in August to 7.0 percent in September. This is a stark contrast to White workers, who saw an unemployment rate of 3.6 percent, and Asian workers, who had an unemployment rate of 2.9 percent.

Cunningham notes that the rise in Black unemployment should not be seen as a collapse in employment, but rather a warning sign that the economy is not creating enough jobs to absorb workers entering or returning to the labor market.