The U.S. economy added far more jobs than anticipated in September while the unemployment rate ticked down to 4.1%. According to the latest data from the Bureau of Labor Statistics (BLS), the U.S. added 254,000 jobs in September when economists expected around 150,000. In August, preliminary data showed 142,000 jobs added and 4.2% unemployment.
With the release on Friday, Oct. 4, the BLS revised July’s numbers up by 55,000 to 144,000 jobs added for the month. It also revised up August’s numbers by 17,000 jobs, from 142,000 to 159,000 jobs added.
In total, jobs added in July and August are 72,000 more than previously reported by the Labor Department.
The latest jobs report comes less than a month after the Federal Reserve lowered its benchmark interest rate by 50 basis points. The U.S. central bank has a dual mandate to maintain stable prices and reach full employment.
This stronger-than-anticipated report will put the Fed’s November meeting in focus, where it is anticipated it will cut rates again by 25 bps.
The Bureau of Labor Statistics said the number of people not working who want a job is at 5.7 million. Construction employment continues to trend up, adding 25,000 jobs in September. The construction sector has consistently grown over the last 12 months, adding an average of 19,000 jobs per month.
Jobs in food services and drinking establishments rose by 69,000 in September, considerably above the 12-month average of 14,000 per month. This sector contained the largest increase in jobs for the month.
Health care added 45,000 new jobs, which is below the average monthly gain of 57,000 over the last 12 months.
The latest jobs report comes amid two large labor disputes.
Machinists at Boeing have been on strike for three weeks. Meanwhile, a dockworkers strike at ports along the East Coast hit the picket line earlier this week, but were able to reach a tentative agreement to suspend the strike until Jan. 15, 2025.
