Job Growth Surges in September, Signaling Economic Resilience.
The September jobs report paints a picture of a labor market that is not only resilient but also surprisingly strong. This positive news, coupled with upward revisions for previous months and a continued upward trend in average hourly earnings, offers a reassuring signal about the underlying strength of the U.S. economy. However, the slight decrease in the average workweek serves as a reminder that some uncertainty persists, and the Federal Reserve will need to carefully weigh all available indicators when making decisions about future monetary policy actions.
This unexpected surge in job creation defied the recent narrative of a cooling labor market, as evidenced by the Federal Reserve's Beige Book report, which had indicated a widespread slowdown in economic activity across multiple sectors. The September jobs figures now challenge this narrative, suggesting that the economy may be on a more robust footing than previously thought.
The Numbers*:
The U.S. economy added 254,000 jobs in September, well exceeding the average monthly gain of 203,000 jobs over the past 12 months.
The unemployment rate decreased slightly to 4.1%, reaching its lowest point since May 2024.
There were 8.0M open jobs on the last working day of August, up from 7.7M open jobs in July.
The labor force participation rate held steady at 62.7%, signaling a continued willingness among workers to engage in the job market.
The number of job quits (voluntary exits) in the U.S. trended down to 3.1 million.
- Average hourly earnings increased by 0.4%, to $35.36, bringing the year-over-year increase to 4.0%.
- Average weekly hours worked edged down slightly to 34.2 hours per week.
- Total hires were 5.3M, while total separations were 5M.
- Within separations, layoffs/discharges were down 1.6 million.
Industry Trends:
| Industry | September Jobs | Notes |
| Leisure and Hospitality | + 78,000 | Restaurants and bars were a major contributor, showing a substantial improvement over the previous months. |
| Health care | + 71,700 | Growth spread across hospitals, home health care services, and nursing facilities. |
| Construction | + 25,000 | Maintaining the sector's momentum and outpacing pre-pandemic averages. |
| Manufacturing | - 7,000 | Due to a drop in durable goods manufacturing. |
Revisions to previous months’ job figures also reflect an improving outlook. July's figures were revised up by 55,000 to a total of 144,000, and August's numbers increased by 17,000 to 159,000, further bolstering confidence in the labor market's resilience.
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* Above represents September 2024 Data
Sources:
