The U.S. economy added 254,000 jobs in September, significantly outpacing economists’ projections of 150,000. The unemployment rate also saw a slight decrease, falling from 4.2% to 4.1%.
#ICYMI: The U.S. economy added +250,000 new jobs in September.
Under the Biden-Harris Administration, +700,000 new manufacturing jobs have been created & +$910B in private manufacturing investments have been announced nationwide. #ManufacturingWeekhttps://t.co/t2rvGRfE57
— U.S. Commerce Dept. (@CommerceGov) October 8, 2024
Brian Bethune, an economist and professor at Boston College, said, “We had a bounce-back now in September from what were relatively sluggish numbers in July and August.
Last week showed us that the US labor market is even stronger than we thought.
“It’s not just a strong recovery, but the kind of recovery that is quite sustainable.” @mikemadowitz shares his thoughts in @nytimes ⤵️ https://t.co/vpWt9YJxd7
— Roosevelt Institute (@rooseveltinst) October 7, 2024
The economy is expanding, and we have a very high probability of achieving a soft landing, reining in high inflation without triggering a recession.”
Employment population ratio moved up in September … trend still inconsistent with recession unfolding near term pic.twitter.com/EMoqz1jaRn
— Liz Ann Sonders (@LizAnnSonders) October 7, 2024
The service sector played a major role in driving job gains, with health care adding 71,700 jobs and leisure and hospitality contributing 78,000. Together, these sectors accounted for 202,000 of September’s job growth. In contrast, job gains were more muted in goods-producing industries.
The construction sector added 25,000 jobs, while the manufacturing sector experienced a slight drop, losing 7,000 jobs. Average hourly earnings grew by 0.4% for the month, bringing the annual rate up from 3.9% in August to 4%.
U.S. job market excels in September
Through September, the U.S. has averaged 199,000 job additions per month, surpassing pre-pandemic levels despite being below last year’s average of 251,083. The Federal Reserve’s strategic management of interest rates remains closely tied to these employment statistics. With inflation moving closer to the Fed’s 2% target, the central bank now emphasizes ensuring robust employment conditions.
Josh Hirt, senior U.S. economist at Vanguard, suggested that the strong job numbers might make the Federal Reserve’s forthcoming decisions on rate cuts less urgent. “The Fed will likely continue with a deliberate plan of rate cuts. This removes the strong case for more aggressive actions,” Hirt said.
The next significant indicator will be the Federal Reserve’s policy decision on November 6, closely followed by the October jobs report. While this report could appear more volatile due to recent labor disruptions, it will ultimately contribute to shaping economic expectations moving forward.
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