U.S. Added 254K Jobs in September, Beating Expectations as Unemployment Dipped to 4.1%.
September 2024 U.S. Employment Report
The U.S. labor market posted stronger-than-expected job gains in September, showing resilience despite broader economic uncertainties. Key data highlights from the Bureau of Labor Statistics (BLS) report include robust payroll growth, a slight dip in the unemployment rate, and moderate wage increases.
Payroll Growth
Nonfarm payrolls surged by 254,000 in September, a significant jump from the revised 159,000 in August. This figure also outperformed economists’ predictions, with a consensus forecast of only 150,000 new jobs. The gains were primarily driven by strong hiring in sectors like food services and drinking places (+69,000), healthcare (+45,000), and construction (+25,000). Employment in social assistance and government also showed healthy increases, contributing 27,000 and 31,000 jobs, respectively. Revisions for July and August added a combined 72,000 more jobs than previously reported, indicating the labor market’s sustained strength in recent months.
Average Hourly Wages
Wages continued to rise in September, though at a measured pace. Average hourly earnings for all employees on private nonfarm payrolls increased by 0.4%, or 13 cents, reaching $35.36. Over the past 12 months, wages have grown by 4.0%, reflecting steady but controlled wage inflation. For private-sector production and nonsupervisory workers, hourly wages rose by 0.3%, or 8 cents, to $30.33. This wage growth signals a competitive labor market but does not suggest wage pressures are out of control, which is critical for Federal Reserve policymakers monitoring inflationary trends.
Unemployment Rate
The unemployment rate dipped to 4.1% in September, down from 4.2% in August. Although this is still above the 3.8% recorded a year ago, the labor market appears to be improving. The total number of unemployed people stands at 6.8 million, a modest reduction from the prior month. While the unemployment rate for most demographics remained stable, adult men saw a noticeable decline to 3.7%. The labor force participation rate held steady at 62.7%, showing no major shifts in the number of Americans actively seeking work.
Market Outlook
September’s employment report paints a generally positive picture for the U.S. economy. The stronger-than-expected job gains, alongside steady wage growth, suggest a labor market that continues to power economic expansion. However, the Federal Reserve will likely keep a close eye on wage growth and inflation in deciding whether further interest rate hikes are needed. Based on the data, the outlook remains bullish for the labor market, although some sectors may still face inflationary headwinds.
