In September 2024, the U.S. labor market exceeded predictions, with nonfarm payrolls rising by 254,000, significantly higher than the projected 150,000. The unemployment rate dropped to 4.1%, while average hourly earnings saw a notable increase. The strong report has implications for future Federal Reserve interest rate decisions. The full report can be found here, as shared by CNBC.
Newstro Quick Facts
- The U.S. economy added 254,000 jobs in September 2024, a substantial jump from the revised 159,000 in August, and well above the Dow Jones forecast of 150,000. The unemployment rate declined to 4.1%, reflecting a more robust labor market.
- Average hourly earnings increased by 0.4% for the month and showed a 4% year-over-year growth. These gains exceeded expectations and suggest continued wage growth amidst strong job creation, with the hospitality sector leading in new positions.
- Revised data from July and August indicate additional gains of 55,000 and 17,000 jobs, respectively, reinforcing confidence in the labor market’s resilience and setting the stage for potential Federal Reserve adjustments.
Nonfarm payrolls in the U.S. jumped to 254,000 in September 2024, surpassing the revised 159,000 from August. This figure exceeded the Dow Jones forecast of 150,000, demonstrating a resilient labor market despite prior economic uncertainties. The unemployment rate edged down to 4.1%, supported by an increase in household employment numbers, which showed a gain of 430,000. These figures, combined with a 0.4% rise in average hourly earnings, point to continued strength in the U.S. economy.
The report highlights notable job creation in key sectors. The hospitality industry led the way, adding 69,000 jobs, while the healthcare sector followed with 45,000 new positions. Government employment also rose, contributing 31,000 jobs. The social assistance and construction sectors experienced gains as well, further boosting the employment numbers. These developments suggest sustained demand for workers across a variety of industries, even as the average workweek ticked down to 34.2 hours.
September’s job gains are accompanied by upward revisions from previous months. August saw an additional 17,000 jobs added to the initial count, while July’s total rose by 55,000. These revisions bring a clearer picture of the labor market’s recent strength, influencing the Federal Reserve’s potential policy adjustments. With consistent wage growth and a declining unemployment rate, economists are watching closely to determine the pace of future interest rate cuts by the Fed, which may occur as soon as November or December.
The Federal Reserve’s chair, Jerome Powell, previously described the job market as “solid,” but the new data reinforces the view that labor market conditions remain strong despite expectations of a slowdown. Although some indicators, such as business surveys, have hinted at a possible cooling, the September jobs report reveals that employers are still expanding their workforce. The Fed’s ongoing approach to interest rate adjustments will likely hinge on this evolving economic landscape.
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