Delayed jobs report to be released

October 21, 2013

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A week after Congress voted to end the government shutdown and pass a debt deal to raise the nation's borrowing limit, the Bureau of Labor Statistics has resumed its normal flow of data collecting and will release itsSeptember jobs report.

The report by the Bureau is largely considered the most accurate indicator of the economic recovery. Originally intended to be released Oct. 4, the jobs report was delayed 18 days due to the government shutdown, when Bureau laborers were furloughed. The report will be released Oct. 22.

Report influence
Under its current Quantitative Easing program, the Federal Reserve has maintained its monthly bond-purchasing rate of $85 billion in an effort to stimulate the economy and encourage growth in the housing market. Mortgage rates have remained low under the current program, helping first-time home buyers find a low cost mortgage. However, rates are expected to rise if the Federal Reserve decides to taper off its spending.

Fed officials have stated they will not begin to reduce spending until the national unemployment rate reaches 6.5 percent. Without a jobs report from the federal government, any decision by the Central Bank was delayed during the shutdown.

"They're going to approach each of the economic reports - no matter what the reports are representing in terms of data - with a healthy dose of caution, and that is the right approach," Tom Porcelli, RBC Capital Markets chief U.S. economist, told CNBC. "Tapering is off the table for this year. It's becoming more of a 2014 event."

The Federal Reserve will need to carefully consider how to taper its QE program in order to preserve the improvement in the housing market, where buyers have been able to take advantage of current interest rates and get a low cost mortgage.

September estimates
Without government data, economists relied on private reports during the 16-day shutdown, estimating that 180,000 private-sector jobs were added to the economy in September while the unemployment rate remained stagnant at 7.3 percent, USA Today reported.

Between June and August, the rate of employment growth slowed to an average of 148,000 more jobs each month, fewer than the 200,000 added in the first five months of 2013. Though the number is estimated to be higher in September, Federal Reserve officials hope to see 200,000 or more jobs added before reducing stimulus spending.

The shutdown also affected the release of future reports. The October jobs report, along with other Labor Department data, originally due on the first day in November was pushed back one week to Nov. 8.

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