The teetering U.S. labor market received good news Friday, as September job growth shattered economist forecasts.
The U.S. added 254,000 jobs last month, according to nonfarm payrolls data released Friday morning by the Labor Department.
That smashed average economist estimates of 150,000, according to Dow Jones data.
The unemployment rate dipped to 4.1%, compared to projections of 4.2%, where it stood in August.
The government upwardly revised job growth in July by 55,000 to 144,000 and August by 17,000 to 159,000 on Friday. Both summer months’ initial reports disclosed far weaker labor market expansion than expected, as July’s first-reported 114,000 new jobs came short of economist estimates of 185,000 and August’s initial 142,000 was shy of the 160,000 forecasted.
The last two weaker-than-expected job reports set off alarms about the health of the U.S. labor market and the potential for a recession, though most economists believe the U.S. is far from a full-fledged downturn despite the added angst as output roars. Concerns about the labor market were made worse by the government’s August announcement it likely overestimated job growth from March 2022 to March 2023 by more than 800,000 positions. Hiring should receive a boost from monetary policy, as the Federal Reserve lowered interest rates for the first time in 4.5 years last month, as lower borrowing costs often cause companies to loosen their belts as bottom line pressures ease. Investors anticipate the Fed to make a series of rate cuts in coming months, with futures trading pricing in a federal funds rate of about 3% as the most likely scenario by the end of 2025, nearly half of the 5.25% to 5.5% range it stood from July 2023 to last month.
Topline Leading U.S. stock indexes gained Friday after the Labor Department delivered a scalding October jobs report, which revealed a far stronger labor market
Stan Choe | Associated PressNew York – U.S. stocks are rising amid a rush of optimism Friday after a report showed U.S. employers went on a stronger spree
Jobs in the entertainment industry and adjacent fields fell in the month of September, even as the broader U.S. labor market continued to pick up steam, acco
Hiring in the US surged unexpectedly last month, in a rebuttal to those worried that the economy might be headed for a sudden, sharp downturn. Employers in the