/2019/06/17/1864062835p.jpg)
Economic growth estimates for the third quarter range from as low as a 1.3% annualized rate to as high as a 1.9% pace. The economy grew at a 2.0% pace in the second quarter, slowing from a 3.1% rate in the January-March period.
Slower growth was reinforced by a report from the Commerce Department on Friday that showed the U.S. trade deficit widened 1.6% to $54.9 billion in August.
A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, declined to 6.9% last month, the lowest level since December 2000, from 7.2% in August.
Despite the tight labor market, average hourly earnings were unchanged last month after advancing 0.4% in August. That lowered the annual increase in wages to 2.9% from 3.2% in August. The average workweek was unchanged at 34.4 hours.
Some economists believe wage growth is stalling because companies are hiring inexperienced workers in the face of labor shortages. Others blame the slowdown on ebbing demand for workers.
"With demand for labor softening and many companies contending with higher input costs as the trade war lingers and broadens, we do not expect to see any meaningful strengthening in wage growth in the coming months," said Sarah House, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.
Hiring is slowing across all sectors, with the exception of government, which is being boosted by state and local government recruitment. Private payrolls increased by 114,000 jobs in September after rising by 122,000 in August.
The three-month average gain in private employment fell to 119,000, the smallest since July 2012, from 135,000 in August.
Manufacturing shed 2,000 jobs last month, the first decline in factory payrolls since March, after hiring 2,000 workers in August. Factory employment growth has slowed from last year's brisk pace. Manufacturing has ironically borne the brunt of the Trump administration's trade war, which the White House has argued is intended to boost the sector.
Read Also: Global shares at 1-month low on U.S. manufacturing shock
Last month's decline in manufacturing payrolls was led by the automotive sector, which lost 4,100 jobs. Further losses are likely if a strike by General Motors workers continues.
There were also job losses in machinery, fabricated metals products and primary metal industries.
Construction employment increased by 7,000 jobs last month after rising by 4,000 in August. Retail payrolls dropped by 11,400 jobs, shedding employment for an eighth straight month.
Government employment increased by 22,000 jobs in September after surging by 46,000 in August. Hiring was boosted by state and local governments. Only 1,000 workers were hired last month for the 2020 Census. Government payrolls have increased by 147,000 over the year, driven by local governments.
