"A key report on the job market will not be published on Friday, as scheduled, as a result of the government shutdown. That means businesses and policymakers will be left guessing about the strength of the labor market at a time when the U.S. economy appears to be slowing. If the shutdown drags on for more than a few days, a report on inflation scheduled for mid-October could also be delayed."
"That report is part of the formula used to calculate the cost-of-living adjustment (COLA) that Social Security recipients receive next year. The number-crunching bureau at the Labor Department is one of many government agencies idled by the shutdown. A similar work stoppage in 2013 delayed key economic reports for more than two weeks. The shutdown comes at a sensitive time for the economy."
"Hiring slowed sharply in recent months, and government tallies showed that employers actually cut jobs in June for the first time since 2020. The unemployment rate inched up to 4.3% in August its highest reading in almost four years. The September jobs report would ordinarily help shed light on whether those trends continued into early fall. Concerns about weakness in the job market prompted the Federal Reserve to cut interest rates in September for the first time all year."
The government shutdown halted Labor Department operations, delaying the scheduled September jobs report and risking a mid-October inflation release. The delayed inflation data are part of the formula used to calculate next year’s Social Security cost-of-living adjustment (COLA). The shutdown follows historical precedent: a 2013 stoppage also postponed key economic reports for more than two weeks. Labor-market indicators showed slowing hiring, a June jobs decline, and an unemployment rate rising to 4.3% in August. Those trends prompted a Federal Reserve interest-rate cut in September and leave policymakers without timely data ahead of an upcoming rate decision.
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