:max_bytes(150000):strip_icc()/GettyImages-2144486038-622f84cace804482abcad9722e74eb84.jpg "September Jobs Report Shows Big Jump in Hiring as Labor Market Stays Resilient")
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Key Takeaways
- U.S. employers added 254,000 jobs in September, blowing past expectations for 150,000 jobs to be added.
- It was the most jobs added in six months, underscoring the resilience of the job market despite a recent downshift.
- Rapid job growth could take pressure off the Federal Reserve to cut interest rates rapidly.
The job market had downshifted in recent months, but it went into overdrive in September.
U.S. employers added 254,000 jobs in September, an acceleration from the upwardly-revised 159,000 in August, and the most since March, while the unemployment rate edged down to 4.1% from 4.2%, the Bureau of Labor Statistics said Friday. The figure blew past the expectations of forecasters, who had called for an increase of 150,000 jobs and the unemployment rate to hold steady, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.
The unexpectedly rapid job growth comes at a time when financial markets, and officials at the Federal Reserve, are eyeing data on the job market especially closely.
The Fed is looking for signs of weakness in the job market, which could pressure policymakers to cut interest rates faster to support the economy and prevent a spike in layoffs. If the job market stays healthy, the Fed could instead reduce its benchmark fed funds rate at a slower pace, which would keep borrowing costs on all kinds of loans higher for longer.
Employers in restaurants and healthcare added the most jobs, increasing employment by 69,000 and 57,000 respectively.