The US labor market exceeded expectations in September, adding 254,000 jobs, far surpassing the 150,000 projected by economists.
The unemployment rate dropped unexpectedly to 4.1%, down from 4.2% in August. These stronger-than-expected numbers highlight continued resilience in the labor market despite concerns about economic cooling.Wage growth, a key indicator for inflation, rose 4% year-over-year and 0.4% monthly, consistent with August’s figures. This data has tempered speculation of a significant rate cut by the Federal Reserve, with experts suggesting that the Fed may now hold off on further aggressive monetary policy shifts.Food services, healthcare, and government sectors led September’s job gains. Revisions to previous reports also revealed that 72,000 more jobs were added in July and August than initially reported, further reinforcing the strength of the US job market.Despite concerns earlier in the year, the labor market’s performance supports optimism for steady economic growth heading into the final quarter.