US lost 33,000 jobs in Sept, vs 90,000 jobs increase expected Jeff Cox | @JeffCoxCNBCcom

The U.S. economy lost 33,000 jobs in September even as the unemployment rate fell to 4.2 percent, the Bureau of Labor Statistics reported Friday.

It was the first time since September 2010 that the closely watched number was negative.

Economists surveyed by Reuters expected payroll growth of 90,000 in September, compared to the initially reported 156,000 in August. The unemployment rate was expected to hold steady at 4.4 percent.

The number was expected to be lower than usual due to Hurricanes Harvey and Irma that hammered Texas and Florida respectively, as well as other states. Policymakers at the Federal Reserve watch the report closely to help guide future policy, though this month’s report may be treated as outlier due to the weather impact.

The storm’s effects were obvious — eating and drinking establishments lost 105,000 positions as workers were laid off due to damage from the record-breaking hurricanes.

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