33G jobs sunk

Hurricanes hit labor market hard: pros

HURRICANES HARVEY and Irma delivered a temporary blow to U.S. job numbers last month.

Storm damage in Texas and Florida produced the first monthly decline in U.S. jobs in seven years, with a reported loss of 33,000 in September.

Numbers released Friday from the Labor Department reflected a drop of 105,000 positions in restaurant and bar jobs, fallout in Florida’s tourism industry after Irma.

Economists had predicted nonfarm payrolls would increase by 90,000 jobs last month.

Despite the loss of jobs, the unemployment rate dropped to 4.2% from 4.4% — an indication the September numbers were not a harbinger of bigger problems. The 4.2% figure was the lowest since February 2001.

“The labor market remains in good shape,” said Gus Faucher, chief economist at PNC Financial. “The job losses were due to disruptions from hurricanes, not underlying weakness in the economy.”

The drop in the unemployment rate comes from a different method of determining the numbers. People are still considered employed even if they missed work and were unpaid as a result.

Some experts predict the hurricanes that pounded Texas and Florida will actually boost the economy, with businesses reopening as construction companies kick into high gear with rebuilding and repair work.

In the 87 counties designated as disaster areas in the two states, more than 11 million people are employed — nearly 8% of nation’s workforce.