Hurricanes Harvey and Irma kept more than one and a half million people from work as a result the US economy lost more jobs in it gained last month. The first net loss since 2010 but that’s not the entire picture says macro economic advisors Ben Herzon.
“This was actually a pretty good report, if you take out the effects of the hurricanes.You have got, you know excluding hurricanes effect you got, you know more than 200,000 a payroll gain.”
Which remains in line with average monthly gains for the year, the big surprise is that average hourly earnings went up by half a percent compared to just two tenths in August.But there’s a simple explanation for that, says Jed Kolko chief economist at online job site, indeed.com.
“That’s because the hurricane reduced employment in some lower wage sectors and leisure and hospitality, and if there are fewer people working lower wage sectors that ends up raising the average across the economy of wages.”
Economic research for Moody’s Analytics says the storms could shave almost 1 percent of the third quater GDP.But most economists say that’s only temporary.
“People are coming back to work already . The October job numbers will be solid and then we’ll see some benefits from federal aid, from insurance payments that will help support rebuilding.So we’ll make up most of all that output over the next few quarters.”
US automakers have already seen a rebound selling more than one and a half million vehicles in September.“I think the consumers are in good shape. They are going out and buying cars and light trucks and that’s good news for US manufacturing.”
Barring another round of damaging storms, some economists expect a quick rebound.“Actually, by next month we’re gonna see a huge boost to payroll gains as people return to work. I mean I wouldn’t be surprised to see a number approaching 400,000 of October.”
Despite the job losses last month the Labor Department says, the number of Americans looking for work has declined more than 300,000 over the past year.
Mil Arcega for VOA News Washington.