| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Despite a September jobs report that saw the U.S. economy add 119,000 positions—more than double the expectations of forecasters—top economist Justin Wolfers is urging caution, warning that rising unemployment signals it is time for the country to “cut back on the economic junk food.”
Following the release of the Bureau of Labor Statistics data, Wolfers, a Professor of Public Policy and Economics at the University of Michigan, characterized the report as a classic case of mixed signals.
While the headline number of 119,000 jobs suggests an economy that is “still standing” and not currently in a recession, the creeping unemployment rate—now hovering near 4.5%—tells a more concerning story about the broader trend.
“Monthly jobs reports are like bathroom scales: step on once and you get noise, step on for months and you see the trend,” Wolfers noted. “The higher unemployment rate says ‘maybe cut back on the economic junk food.'”
See Also: The Fed Is Split – And A December Rate Cut Moves Further Away
Wolfers' caution regarding the underlying trend is echoed by other market analysts who point out that the headline beat masks deeper weaknesses.
While the economy added jobs in September, previous months saw significant downward revisions. Bill Adams, Chief Economist for Comerica Bank, noted that job growth in July and August was revised down by a combined 33,000, describing the September data as “stale.”
“The unemployment rate rose to the highest in almost four years,” Adams observed, adding that despite the payroll bump, the data suggests labor demand is struggling to keep up with workforce growth.
He points to rising unemployment among key demographics, including a 1.5% point rise in the Black unemployment rate since May, as a potential warning sign of a cooling cycle.
Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management, argued that “middle approach is the best” as there is “some froth in the market” due to high valuations and spending on AI, “Whether or not the spending turns out to be overdone won't be known for many years.”
However, the consensus among experts remains that the labor market is losing momentum. Wolfers emphasized that while the economy hasn’t “turned south,” the steady half-point rise in unemployment since the start of the current administration indicates a definitive slowdown.
For policymakers and investors alike, the message is clear: the headline surge is welcome news, but the longer-term health of the economy requires a stricter diet of fundamental discipline rather than reliance on volatile monthly spikes.
The benchmark indices reversed gains to plummet during the Thursday close.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed lower on Thursday. The SPY was up 1.52% at $652.53, while the QQQ declined 2.37% to $585.67, according to Benzinga Pro data.
The futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Friday, after a sharp sell-off on Thursday.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
