US Economy Adds 254,000 Jobs in September, Defying Expectations
US Economic Growth Steady Despite Hiring Slowdown
The US economy made significant strides in September, adding 254,000 jobs and bringing the unemployment rate down to 4.1%, according to the US Department of Labor. This job growth exceeded predictions and brought relief amid concerns of a weakening labor market. Wall Street had expected a more modest increase of 150,000 jobs, and the positive news has cast doubt on the likelihood of further interest rate cuts from the Federal Reserve.
Despite this strong job growth, some signs of a slowdown remain. The hiring rate fell to its lowest since August 2013, excluding the pandemic, with reduced worker confidence. Meanwhile, the quits rate, a key measure of job market health, dropped to its lowest level since 2020.
Private Sector Growth
The private sector contributed 143,000 jobs in September, surpassing analyst expectations of 125,000. Wage growth continued, with hourly earnings rising 4% year-over-year.
As the US heads into a presidential election, economic performance remains a top issue for voters. While the job market remains robust, concerns about inflation and high prices persist.
Federal Reserve Chair Jerome Powell hinted at gradual interest rate cuts if the economy stays on course, with two more possible cuts in November and December. However, the strong wage growth seen in September makes additional large rate cuts less likely.