Lower-paying industries were mixed. Hotels and restaurants cut about 11,000 jobs, after strong hiring earlier this year. Retailers added 21,000 positions.
The budget impasse didn’t stop Accumold, which makes components for medical devices, smartphones and other electronic goods, from boosting its workforce. CEO Roger Hargens said the Ankeny, Iowa-based company filled jobs in September and plans to add up to 65 to its 185-worker staff in the next few months.
Hargens says he is seeing more orders from customers who are shifting from Chinese manufacturers to U.S. suppliers.
“There’s a big trend to move manufacturing back to the United States,” he said. “It’s really speeding up now for us.”
Last month, average hourly U.S. pay ticked up 3 cents to $24.09. In the past year, pay has risen 2.1 percent, ahead of the 1.5 percent inflation rate.
The government revised its estimates of job growth in July and August to show a slight net gain of 9,000. It said employers added 193,000 jobs in August, more than the 169,000 previously estimated. But it said just 89,000 were added in July, the fewest in more than a year and below the earlier estimated 104,000.
The deceleration in job growth was a key reason the Fed decided in September to hold off on slowing its $85-billion-a-month in bond purchases. Many economists think the lack of clean data will lead the Fed to put off any decision on the bond purchases until 2014.
“It reinforces their hesitancy,” Feinman said of the September jobs report. “It’s more validation for their hesitancy to taper in September.”
Many economists say the shutdown cut $25 billion out of the economy and slowed growth to about a 2 percent annual rate in the October-December quarter. That’s down from estimates before the shutdown that the economy would expand at a 2.5 percent annual rate.
Robert Mellman, senior U.S. economist at JPMorgan Chase, forecasts that October’s job gains will be lower by about 35,000 because of cutbacks at government contractors and other companies affected by the shutdown. Many of those jobs will be regained in November.
Growth is expected to rise slightly in the first three months of next year, as consumers and businesses make purchases and investments that were delayed during the shutdown.