More than 250,000 New Jobs Created in US Economy: September Jobs Report Surpasses Expectation
The U.S. job market posted solid gains in September with American employers adding 254,000 jobs last month, far above the 140,000 economists were anticipating. This positive report suggests that the economy is still on a firm footing, and with it being 4.1% in September from August’s reading of 4.2%, the unemployment rate did tick lower.
Job Growth Beats Projections
The Labor Department report indicated strong job gains in a number of sectors. This included 223,000 new jobs in the private sector, significantly up from estimates of 125,000. But the manufacturing sector saw a loss of 7,000 jobs—another surprise, since consensus expectations had been for a 5,000-job decline in manufacturing.
July and August job data updated
It revised up by 7,000 the number of jobs added in prior months. The July job gain was revised up from 89,000 to 144,000 and the August gain from 142,000 to 159,000. The revisions simply highlight a modest increase in employment over the past few months.
Notable Industry Performance
According to the report, employment at food and drinking establishments increased by 69,000 last month — far more than the 12-month average gain of 14,000 jobs in this industry.
Healthcare Job growth continued in September, adding 45,000 jobs—but slightly slower than the average monthly gain over the prior 12 months (+57,000).
Wages and Labor Participation
Average hourly earnings went up by 13 cents to $35.36, making September a 0.4% gain Wages have increased 4% over the past year. The labor force participation rate also held steady at 62.7% for the third straight month.
Two more issues are the number of multiple jobholders and long-term unemployment.
Even so, those working two jobs swelled by 121,000 to sit at 8.66 million or 5.3% of the workforce. The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 1.6 million and accounted for 23.7% of the unemployed.
Impact of Fed Policy / Future Outlook for Bitcoin
Friday’s data point to a tight jobs market that is informing the Federal Reserve’s approach on interest rate cuts. There had been a 53% chance of a half-point cut in rates at first but this number fell to 9% after the report. The Federal Reserve had already lowered its benchmark rate in September, and officials are now likely to lower rates again this year by just a quarter of a percentage point rather than the half-percentage-point reductions they approved at their last meeting.
Potential Challenges Ahead
Although job numbers look good, the U.S. economy does have a few dark clouds on the horizon. Simple: machinists who are striking at Boeing and dockworkers who have had a temporary work stoppage — they could mean the October jobs report was impacted. Meanwhile, damage from Hurricane Helene in the Southeast is also expected to have a temporary impact on employment.
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