Hurricanes Cause Job Losses in September, Future Shows Thriving Market

04:04 10/10/2017

The Labor Department reported that the effects of Hurricanes Harvey and Irma lost 33,000 jobs last month, damaging the Florida and Texas economies. However, according to the Bureau of Labor Statistics, the unemployment rate decreased to 4.2 percent in September. Job growth looks to rebound in the future months as the market begins to escalate for repairs and renovation. This could off-set the temporary loss of jobs suffered to the economy.

The Bureau of Labor Statistics also suggests that a considerable portion of the drop in employment could be partially due to the employment in food services and drinking as a result of the hurricanes. Comparatively, over the course of 12 months, “food services and drinking places had added an average of 24,000 jobs per month” the BLS stated.

Among other employment sectors that increased in September were transportation and warehousing, air transportation, and insurance carriers. Sectors that showed minimal change over the month included mining, construction, retail trade, information, and government. The automobile sector even experienced a slight boost in sales as cars began to be replaced after the storm.

The damage was done and the markets responded in September, but what do the events of September mean for October?

Since September 6 both Home Depot Inc HD  and Lowe’s Companies, Inc. LOW  have been on an upward trajectory, each registering more than a 5% increase in price per share to press time. Both companies have seen a considerable improvement in positioning since the housing market crises with Home Depot and Lowe’s finding a jump of over three digits, more than 400% and 185% respectively.

When comparing operating margin reports with survivability given several threats to the industry overall, housing crises and somewhat restriction on future housing growth, these two competitors appear to be continuously ahead of naysaying predictions and forecasts.

The sector overall could appear to take on a rebound once the residual effects of Hurricane season ends and the season of thrifty spending begins with multiple holidays around the corner. Compared to the unemployment rates of September 2016, the impact of this holiday season could stand to be a record if the statistics offered by the BLS suggesting an improved unemployment rate continue.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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