From Karim:
Broad-based weakness.
- Payrolls -159k, net revisions +4k.
- Unemployment rate rises from 6.055% to 6.125%.
- Avg hourly earnings up 0.2%.
- The shocker was hours worked down 0.5% and down 2% at annualized rate in Q3.
- Labor income = payrolls X average hourly earnings X hours worked.
- Hours data implies negative GDP in Q3 and very weak handoff to Q4, where some forecasts are already in -2% to -3% area for real GDP.
- Diffusion Index down from 44.7 to 38.1.
- Manufacturing -51k
- Retail -40k
- Construction -35k
- Finance -17k
- Temp Services -24k
- Education +25k
- Government +9k
BLS stated weather did not have ‘substantial’ effect on number.
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