US Economy Adds Surprising 119,000 Jobs in Delayed September Report
The US labor market showed unexpected resilience in September, adding 119,000 jobs according to a delayed government report from the Labor Department. This figure more than doubled economists’ forecast of 50,000 new positions and provides clarity after a seven-week delay caused by the federal shutdown.
Despite the strong headline, the report revealed some underlying weaknesses. Revisions showed that August actually lost 4,000 jobs, down from an initially reported gain of 22,000, while earlier months were also revised downward by a total of 33,000 jobs. Job growth in September was highly concentrated, with more than 87% of new positions in healthcare and leisure and hospitality, raising concerns about the sustainability of the broader economic expansion. The unemployment rate ticked up to 4.4%, the highest since October 2021, reflecting 470,000 new entrants to the labor force not immediately finding work.
The report has implications for Federal Reserve policy. Steady hiring reduces the likelihood of an interest rate cut at the next Fed meeting, while moderating wage growth, with average hourly earnings rising 3.8% year-over-year, moves closer to levels preferred to control inflation. The overall labor market shows weak hiring in many sectors but few layoffs, meaning job security for those employed, though job seekers face stiff competition.
The September jobs report confirms a labor market with mixed signals: headline growth beats expectations, but concentrated sector gains and rising unemployment suggest caution for policymakers and businesses moving forward.
