US jobs creation surges unexpectedly in September

US jobs creation surges unexpectedly in September


Jobs growth has slowed significantly since last year and the unemployment rate has been ticking higher, though it remains at historically low levels.

Last month, the US central bank cut interest rates by a bigger-than-usual 0.5 percentage points, saying it wanted to avoid any further weakening in the labour market.

But the stronger-than-expected jobs figure this month might mean the Federal Reserve makes smaller rate cuts in the future.

“Today’s jobs figures suggest the Fed’s action is working well to support its full-employment mandate,” said Richard Flynn, managing director at Charles Schwab UK.

“With high inflation largely in the rearview mirror, this could be less good news for markets, as it may slow the pace of future rate cuts.”

The Labor Department updated its estimates of job creation in August and July, saying employers had added about 72,000 more jobs than previously thought.

In September, bars and restaurants led the hiring. Retailers and health care firms also added jobs, while the manufacturing sector shed positions.

The survey also showed solid wage growth, with average hourly pay up 4% over the past 12 months.



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