The last U.S. jobs report before November’s presidential election is projected to show a sharp deceleration in labor-market gains, suggesting the winner will inherit an increasingly shaky economic rebound. Employers probably added 875,000 workers in September following 1.37 million in August, according to the median projection of analysts ahead of Friday’s Labor Department data. The jobless rate likely fell only slightly, to 8.2%.
“There’s a huge amount of strain in the labor market. There’s a long way to go,” said James Knightley, chief international economist at ING. “We’re starting to see a leveling-off in key sectors of the economy.”
Friday’s figures will also give an update on the strains below the surface. The number of workers who have permanently lost their jobs has been rising, compared with those on temporary layoff or furlough. In addition, prior months have shown increases in Americans who have seen extended spells of unemployment.