The US monthly jobs report for September is not expected to be released today as the BLS is closed due to the government shutdown. More than 2,000 of its employees have been laid off, delaying the important data that is usually the focus of markets and policymakers.
The lack of data comes at a time when the labor market is showing signs of weakness. The unemployment rate rose to 4.3% in August, while the latest ADP data reported 32,000 job losses in September, contrary to expectations of an increase.
The situation adds to the challenge for the Federal Reserve, which is assessing its next steps on interest rates. Chairman Jerome Powell acknowledged that the current economic conditions are unusual as the labor market is weakening even as inflation is rising, making policy decisions more difficult.
If the shutdown drags on, other data such as the CPI and PPI could also be delayed. In the absence of an official report, the Fed is expected to look to alternative data such as ADP, jobless claims, consumer confidence, and other private reports.
However, most economists expect the economic impact of the shutdown to be temporary. Still, additional uncertainty and President Trump's erratic economic policies continue to cloud the outlook for labor and inflation.
