Payrolls Disaster: Only 142K Jobs Added In September With Zero Wage Growth; August Revised Much Lower

Tyler Durden's picture

And so the "most important payrolls number" at least until the October FOMC meeting when the Fed will once again do nothing because suddenly the US is staring recession in the face, is in the history books, and as previewed earlier today, at 142K it was a total disaster, 60K below the consensus and below the lowest estimate.

Just as bad, the August print was also revised far lower from 173K to 136K. And while it is less followed, the household survey was an unmitigated disaster, with 236,000 jobs lost in September.

Putting it into perspective, in 2015 job growth has averaged 198,000 per month, compared with an average monthly gain of 260,000 in 2014. The recession is almost here.

As noted above, the headline jobs print was below the lowest wall street estimate. In other words 96 out of 96 economisseds did what they do best.

The unemployment rate came in at 5.1% as expected but everyone will be focusing on the disaster headline print.

And worst of all, average hourly wages stayed flat at 0.0%, also below the expected 0.2%. Actually, if one zooms in, the change was not 0.0%, it was negative, while weekly earnings actually declined from $868.46 to $865.61.


Finally, not only were workers paid less, they worked less, as the average hourly weekweek declined from 34.6 hours to 34.5, suggesting an imminent collapse in economic output.

From the report:

Total nonfarm payroll employment increased by 142,000 in September. Thus far in 2015, job growth has averaged 198,000 per month, compared with an average monthly gain of 260,000 in 2014. In September, job gains occurred in health care and information, while employment in mining continued to decline. (See table B-1.)


Health care added 34,000 jobs in September, in line with the average increase of 38,000 jobs per month over the prior 12 months. Hospitals accounted for 16,000 of the jobs gained in September, and employment in ambulatory health care services continued to trend up (+13,000).


Employment in information increased by 12,000 in September and has increased by 44,000 over the year.


Employment in professional and business services continued to trend up in September (+31,000). Job growth has averaged 45,000 per month thus far in 2015, compared with an average monthly gain of 59,000 in 2014. In September, job gains occurred in computer systems design and related services (+7,000) and in legal services (+5,000).


Retail trade employment trended up in September (+24,000), in line with its average monthly gain over the prior 12 months (+27,000). In September, employment rose in general merchandise stores (+10,000) and automobile dealers (+5,000).


Employment in food services and drinking places continued on an upward trend in September (+21,000). Over the year, this industry has added 349,000 jobs.


Employment in mining continued to decline in September (-10,000), with losses concentrated in support activities for mining (-7,000). Mining employment has declined by 102,000 since reaching a peak in December 2014.


Employment in other major industries, including construction, manufacturing, wholesale trade, transportation and warehousing, financial activities, and government, showed little or no change over the month.

Following all this, the December rate hike odds just tumbled to a record low 32%. It was not immediately clear what the December negative rate odds were as of this writing.

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ZippyBananaPants's picture

Suck my balls Bernanke

Shocker's picture

The Current Job Situation is still very weak


Full Layoff List:


SheepRevolution's picture

<- Rate hike in +100 years

<- Rate hike this year

philipat's picture

Yes, but vertical to a point they were already at a few days ago and from a base pushed lower even after the Options expiries. When that happens, it is ALWAYS the case that the jobs number is going to come in below expectations. Another trading tip....These Guys are SO blatant these days that you can make easy money trading with them.

PS. Nanex Hunsader remarked yesterday that "An Algo" was so obviously manipulating the price of Gold down that it was embarassing. I wonder who that could have been? Definitely not Citadel?

TongueStun's picture
TongueStun (not verified) philipat Oct 2, 2015 8:56 AM

Did the FED pay warren Buffet to Buy IBM stocks?


So the Oracle Of Omaha is still buying IBM after losing 200 million dollars on it this year?

Bunghole's picture

Come on Janet.

I dare you to raise rates.

MillionDollarBonus_'s picture

Dispite the catastrophizing on Zerohedge, this number is yet another positive NFP result in a winning streak that has lasted for over four years. When you have jobs increasing every month for almost five years in a row, it's safe to say that you're in a recovery. This recovery is only getting started - you haven't seennothing yet. When aggregate demand picks up, and more green shoots beging to appear, we are going to see an exponential increase in economic activity. The only thing that worries me is that if we fail to raise rates soon, the recovery will turn into a bubble and we will be back to the boom and bust days. We simply have to put an end to boom and bust, and lay out a sustainable plan for out economy. 

Son of Loki's picture
Dunkin’ Donuts Is Closing 100 Stores


When Mericans cant afford a friggin donut and coffee....


Now that's sad.

Shizzmoney's picture

Dunkin Donuts sucks, that is why they are losing money.

As for this:

Did the FED pay warren Buffet to Buy IBM stocks?

So the Oracle Of Omaha is still buying IBM after losing 200 million dollars on it this year

I think this was part of the "deal" with the bankers: we give you free money, you use some of it to prop up flailing "legacy" American companies who barcoded Jews in the Holocaust like they were iPhones.  

Overfed's picture

Given the up arrows, I would say that people are finally understaning the sublime irony of MDB's posts.

Next to Arch Stanton's picture

"The only thing that worries me is that if we fail to raise rates soon, the recovery will turn into a bubble and we will be back to the boom and bust days."

That made me laugh, only because I know some people that believe this.  Thas was one of MDB's better posts in this past year.

playdoh's picture

Don't worry, the Fed ended boom and bust LMAO

Payrolls are a lagging indicator, that's one hell of a recovery you're expreiencing.

Countrybunkererd's picture

If we keep thinking positive things, we will all be millionaires!  Channel that inner self-love (not porn love) and be sure to keep *liking* everyone you see on farcebook.  a honda civic may cost 2.2 million dollars soon, but we will all be millionaires, so be happy...the FED says so.

RadioFlyer's picture
RadioFlyer (not verified) TongueStun Oct 2, 2015 9:28 AM

Small price to pay for the $T given to him.

mtndds's picture

I wonder how the white house is going to spin this one

Debt-Is-Not-Money's picture

Giant right-wing conspiracy!

Mr. Bones's picture

By tweeting that the unemployment rate is the lowest since 2008.  Yes, they really did that.

Countrybunkererd's picture

They are just numbers, they don't count.  Americans have their aspirations set too high, we all need to work for the state and such.  I have been on hold with them for 2 hours, disconnected once... and i am still number two in line.  They are nickel and diming us to death...fleece and flogging until we all accept that if we are anything other than wait staff we should be thrilled, pay our 60%, and make sure sundays are included as workdays so we get 75+ hours a week.


DISCONNECTED TWICE...these public shitheads need to be eliminated...they serve NO PURPOSE!!!  Best government our long hard hours of work can buy so 95 million of us "don't want jobs" 80 million can't work and the rest of us take it in the pooper all year long.  POS government...all of it.

tarsubil's picture

I see it now. They ramped the Dow to stick the landing with these numbers at 16,000... again. The manipulation will just add up. The more they do it, the worse the final break.

philipat's picture

They keep getting away with it, so watch and learn. You can make money trading their deceptions if you understand what is really going on. The thing is this. When "The Game" is controlled by The Fed and TBTF's using HFT's, they truly can control it for a very long time. So the trick is to identify what is their least expensive way to control it? The new normal. They do actually have methods and limits.

Osmium's picture

Why didn't they lower expectations so they could beat them?  Idiots.

philipat's picture

You're not looking at THEIR big picture. They pushed Gold down in anticipation that it would rise again but pushing down jobs expectations in advance would push Equities down. That would cost a lot more for the PPT to retrieve the damage compared to just pushing Gold down in advance and retrieving Equities AFTER the news?

Bilderberg Member's picture

Headlines just 5 days ago:

US Fed Chair Janet Yellen hints at rate hike in 2015

Bait and switch, baby!

JRobby's picture

<- QE IV begins next week

<- QE IV discussions are planned soon


It is all postponement of the inevitable.

Bobbyrib's picture

The government and Federal Reserve constantly lie with their numbers. Why would they produce something closer to the truth then? As the Tylers stated, no rate hike. IMHO, not now, not ever.

If the collapse happens I expect the Federal Reserve not to be done away with , but actually will be more powerful. They may even amend the Federal Reserve act to give them additional powers.

Arnold's picture

Fed ChinaTM  will hike overnight rates,.and make Our Leadership look stupid.

Seems a common theme this week.

Oldwood's picture

Any failure of the feds only makes them stronger. Society DEMANDS that the feds must act!

Like the bite of a zombie, the "Army" only gets larger. The "infected" never actually die, they live on to infect others.

firstdivision's picture

The employment problem is more of an issue with our open trade deals allowing capital to flow out of the country freely to cheap labor countries, thus gutting the consumers.  Blame corporate lobbyists on this one.

oklaboy's picture

but, but, but we just had our 7th summer of recovery........Joe " the next prez" Biden

T-Bond's picture

The Fed is an epic failure.

tc06rtw's picture

        …  Who’da thunk?

MFL8240's picture

Not for the rich its not!

pods's picture

The FED is a smashing success.  They have kept their money system going for 100+ years and now the FED is on its way to becoming the chief creditor in the nation.

They might have failed US, but that was not why the FED was founded.


jerry_theking_lawler's picture

Yes, it has performed almost flawlessly. It has enriched its owners and driven everyone else to near slavery levels.  Back to fuedal times without people realizing it...yet.

This is it's picture

Shemitaahhhhhh time!!!

abyssinian's picture

HP stocks surging! The Feds just put in a huge order of ink and printers! 

Son of Loki's picture

Very Bullsih for retail sales. Profit margins will take a bloodbath. Sears may not survive this time around.


Bunghole's picture

AMD announced they are laying off 5% of their workforce.

Sprint will be furloughing a portion too.


Gatos Locos's picture
Gatos Locos (not verified) Oct 2, 2015 8:38 AM

Time for another seasonal adjustment.

onewayticket2's picture

nope.  they want to take the pain that next October the numbers look AWESOME...right before the election.


Note:  August and July revised well the good headlines start in July....and have a low bar all the way through Sept (so far)

tc06rtw's picture

 Wouldn’t it be terrible if at the end of his term,  The Wizard of Obama  turned out to be nothing but a  two-bit fakir  in a  worn-out suit!

onewayticket2's picture

Hard for Biden or Clinton to argue (4 more years of THIS) if "this" is a terrible jobs story.  

SDShack's picture

They'll just blame the Repugs since they now control both houses of Congress. They'll say "See what happens when Repubs take over?... 0zer0 had everything going great until the Tea Baggers took over, and now the economy is tanking". Too easy. And the Rhino Repugs will wimper and cave, just like always.