Economy Produced 254,000 US Jobs in September

The September 2024 U.S. labor market report surprised many analysts, exceeding expectations with the creation of 254,000 non-farm jobs. This growth followed an upward revision of the August data, suggesting that the U.S. labor market remains robust despite concerns about a possible economic slowdown.

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One of the most notable points in the report was the drop in the unemployment rate to 4.1%, representing a decrease of 0.1 percentage points compared to the previous month. The household employment survey, which is also used to calculate the unemployment rate, showed an even more significant improvement, with an increase of 430,000 jobs. This reflects a more positive outlook than the non-farm payroll data suggested and a stable labor force participation rate of 62.7%.

Regarding wages, Americans experienced a notable 0.4% increase in their average hourly wage in September and a 4% increase compared to the same month of the previous year. These increases were higher than market estimates, indicating that demand for labor remains high and that wage inflation could continue to be a concern for economic policymakers.

This strong labor performance raises questions about the Federal Reserve’s approach to monetary policy. Although job creation and wage growth could suggest a strong market, some analysts believe that the relatively low unemployment rate could lead the Fed to maintain its strategy of gradually lowering interest rates. The upward revisions to previous months’ employment data also reinforce the idea that the U.S. economy remains healthy.

The sectors that led employment growth in September included hospitality, healthcare, and government, highlighting the diversity of areas driving labor expansion. Hospitality added 69,000 new jobs, while healthcare contributed 45,000 jobs. These figures suggest that the sectors most affected by the pandemic are recovering quickly, contributing to an optimistic economic outlook.