The U.S. labor market experienced a significant boost in September, with job creation exceeding expectations and the unemployment rate falling for the second consecutive month. According to the U.S. Department of Labor, 254,000 new jobs were added in September, a sharp rise from the 159,000 jobs created in August. This surge in employment has brought the unemployment rate down to 4.1% from 4.2% the previous month【BBC】.
Key Economic Indicators Improve
This positive labor market report comes as inflation has recently stabilized close to the Federal Reserve’s target. In prior months, concerns were raised about rising unemployment even as inflation showed signs of easing. However, the robust employment figures from September have helped ease fears about economic stagnation, demonstrating that the U.S. economy remains dynamic and resilient.
Last month, the Federal Reserve made a decisive move by cutting interest rates by 50 basis points in an effort to curb inflation, which has now stabilized at 2%. While the Fed’s aggressive rate-cutting strategy aimed to control inflation, employment was seen as a potential weak spot. However, September’s employment surge exceeded forecasts, quelling these concerns and signaling broader economic health.
Employment Growth Beats Forecasts
Market analysts had initially projected that the U.S. economy would add around 140,000 new jobs in September. In a surprising turn, the actual figure was over 100,000 higher than predicted. The three-month average for new job creation has now reached 186,000, up from the 140,000 average recorded for the three months leading up to August. This substantial increase indicates a widespread recovery in job creation across various sectors.
Job Growth Across Key Sectors
The September job gains were not limited to a single sector but rather spread across various industries, indicating widespread hiring. The food and beverage industry, including restaurants and bars, led the way with 69,000 new hires. The healthcare sector followed with 45,000 new employees, while government agencies added 31,000 new workers. Other notable sectors include social assistance, which added 27,000 jobs, and the construction industry, which recruited 25,000 new workers. Additionally, the professional and business services sector also saw a rise in employment figures.
Wage Growth Remains Steady
While job creation surged, wage growth remained steady. The average hourly wage rose by 4.4% in September compared to August. However, this was a slight deceleration from the previous month’s growth rate of 10.5%. On a year-over-year basis, hourly wages saw a 4% increase in September 2024 compared to September 2023.
Economic Stability Ahead of the Presidential Election
These promising employment statistics arrive just ahead of the U.S. presidential election, set for November. President Joe Biden emphasized the success of his administration’s policies, highlighting that 16 million jobs have been created since he took office. He pointed out that the unemployment rate remains low, and wage growth continues to outpace inflation—a key economic indicator favoring the Democratic Party in the upcoming election.
Political analysts believe that the improving labor market and wage growth could provide a boost to the Democratic candidate, Kamala Harris, in her presidential bid this November. With a stable economy and growing employment opportunities, Harris may gain a competitive edge as voters head to the polls.
