Index Treasure (04 October -2024_ The Bureau of Labor Statistics reports that the job market improved in September. U.S. employers added 254,000 jobs.
The Labor Department said it was above the 12-month average gain of 203,000. Jobs rose in food and drink, health care, government, social assistance, and construction. Job growth blew past forecaster estimates and exceeded the revised August tally of 159,000 new positions.
The unemployment rate ticked down to 4.1% in September from 4.2% in August.
A strong jobs report was not what most economic forecasters expected. The job market was expected to show continued cooling in September. New hiring slowed over the summer, after a strong spring. Bad weather and other seasonal factors dampened hiring.
“Wowza: HUGE jobs report,” wrote economist Justin Wolfers on X.
With the September jobs report, forecasters were looking for signs of stability. Hiccups in the labor market could signal a broader downturn. This could disrupt the delicate balance of easing inflation and modest growth.
The new report does not reflect last week’s chaos. It ignores the dockworkers’ strike that started Tuesday and ended Thursday. It also ignores the tragic fallout from Hurricane Helene, which hit the Southeast in late September.
Now, financial markets will ask: Will the new jobs data sway the Fed’s view on interest rates? Stronger-than-expected job growth could fuel fears of a Fed rate cut halt.
The panel reduced interest rates by half a point at its September meeting. Economists expect a quarter-point cut at the November meeting. But, weak job data could change that.
The Fed next meets Nov. 6 though Nov. 7 to discuss interest rates. By that time, the group will have more data, including the September inflation and October jobs reports.
Forecasters expected the September jobs report to show employers added 140,000 new jobs, essentially the same number of positions created in August. The unemployment rate was forecast to remain unchanged at 4.2%.
