Editor’s note: This story has been updated with additional details.
Signs of a healthy labor market emerged from the official September jobs report, as the U.S. economy added 254,000 nonfarm payroll jobs last month, reflecting a strong improvement over August's upwardly revised figure of 159,000.
This pace of job creation sharply exceeded economist forecasts, offering fresh optimism for the labor market's resilience.
Before the September jobs report, traders were anticipating a nearly 70% chance the Federal Reserve would cut interest rates by 25 basis points in November.
September Employment Situation: Key Highlights
- Nonfarm payrolls rose from 159,000 in August to 254,000 September, surpassing forecasts of 140,000 as tracked by TradingEconomics.
- The change in total nonfarm payroll employment for August was upwardly revised by 17,000 to 150,000. July payrolls were upwardly revised by 55,000, from 89,000 to 144,000.
- The unemployment rate surprisingly fell from 4.2% to 4.1%, below the predicted 4.2%.
- Wage growth showed some upward pressure. Average hourly earnings increased by 0.4% to $35.36 in September, surpassing predictions of 0.3%. August’s average hourly earnings were upwardly revised to 0.5%.
- On a year-over-year basis, average hourly earnings rose 4%, surpassing both the previous and expected 3.8%.
- Employment in food services and drinking places increased by 69,000 in September, well above the average monthly gain of 14,000 over the past year.
- Health care added 45,000 jobs in September, below the 12-month average of 57,000. Gains were seen in home health care services, up by 13,000, hospitals, up by 12,000, and nursing and residential care facilities, up by 9,000.
- Government employment rose by 31,000 in September, compared to an average monthly increase of 45,000 over the past year. Local government added 16,000 jobs, while state government increased by 13,000.
| September 2024 | Consensus | August 2024 | |
|---|---|---|---|
| Nonfarm payrolls | 254,000 | 140,000 | 159,000 (upwardly revised from 142,000) |
| Unemployment rate | 4.1% | 4.2% | 4.2% |
| Average hourly earnings (m/m) | 0.4% | 0.3% | 0.5% (upwardly revised from 0.3%) |
| Average hourly earnings (y/y) | 4% | 3.8% | 3.8% |
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