September jobs report crushes expectations as US economy adds 254,000 jobs, unemployment rate falls to 4.1%

Posted by Admin October 4, 2024 Bussiness

The US labor market added far more jobs than projected in September while the unemployment rate unexpectedly ticked lower, reflecting a far stronger picture of the jobs market than Wall Street had expected.

Data from the Bureau of Labor Statistics released Friday showed the labor market added 254,000 payrolls in September, more additions than the 150,000 expected by economists.

Meanwhile, the unemployment rate fell to 4.1%, from 4.2% in August. September job additions came in higher than the revised 159,000 added in August.

Wage growth, an important measure for gauging inflation pressures, rose to 4% year-over-year, from a 3.9% annual gain in August. On a monthly basis, wages increased 0.4%, in line with August’s reading.

Also in Friday’s report, the labor force participation sat flat from the month prior at 62.7%.

The key question entering Friday’s report was whether the data would reflect significant cooling in the labor market, which could prompt another large Fed interest rate cut.

As of Thursday, markets were pricing in a roughly 36% chance the Fed cuts interest rates by half a percentage point in November, per the CME FedWatch Tool.