U.S. job growth picked up in September, beating economists’ expectations, while the unemployment rate was little changed.
The Labor Department on Friday reported that employers added 254,000 jobs in September, well above the 140,000 gain that was predicted by LSEG economists.
The unemployment rate declined slightly from a month ago to 4.1%.
The number of jobs added in the two prior months were both revised upwards, with job creation in July revised up by 55,000 from a gain of 89,000 to 144,000, while August was revised up by 17,000 from a gain of 142,000 to 159,000.
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Private sector payrolls grew faster than LSEG economists’ expectations, with 223,000 jobs added against a prediction of 125,000. Manufacturing payrolls declined by 7,000 in September, a steeper drop than the decrease of 5,000 that was estimated.
Employment at food and drinking establishments rose by 69,000 in September – well above the average monthly gain of 14,000 over the past 12 months. Job growth in the health care industry slowed to 45,000 last month after averaging 57,000 a month over the past year.
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Average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4%, to $35.36 an hour. That brings gains over the past 12 months through September to 4%.
The labor force participation rate was unchanged for the third consecutive month at 62.7% in September, little changed over the course of the year.
The number of people who are considered to be long-term unemployed, defined as being jobless for 27 weeks or more, was little changed at 1.6 million in September and up from 1.3 million a year earlier. The long-term unemployed account for 23.7% of all unemployed people.
Multiple jobholders increased by 121,000 to 8,659,000 – accounting for 5.3% of the workforce. Part-time workers declined by 95,000 in September, while the number of full-time workers rose by 414,000.
“Today’s report put an exclamation point on this week’s strong jobs data – an upside surprise across the board,” said Chris Larkin, managing director of trading and investing at E*Trade from Morgan Stanley. “Based on this data, not only is the jobs market not falling off a cliff, it doesn’t appear to be anywhere near the edge.”
This is a developing story. Please check back for updates.
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