On a year-on-year basis, wages rose by 4.0%, compared to 3.9% in the previous month.

US adds more jobs in September; unemployment falls to 4.1%

Average hourly earnings grew by 0.4% in September, slightly lower than the 0.5% increase seen in August.

by · India Today

In Short

  • US added 254,000 jobs in September, rise from August
  • Immigration surge and low layoffs boost job market
  • Wages grew 0.4% in September, 4.0% year-on-year

The US labour market showed strength in September, with the country adding 254,000 jobs, according to the latest data released by the Labour Department on Friday. This is a notable increase from August, which saw 159,000 jobs added after revisions. The unemployment rate also dropped slightly to 4.1%, down from 4.2% in August.

The labour market has remained resilient, despite challenges, as hiring continues to grow, supported by a rise in the labour supply.

A surge in immigration has contributed to this, while layoffs have stayed low, helping to boost consumer spending, a key driver of the economy, reported news agency Reuters.

Wages and earnings

Average hourly earnings grew by 0.4% in September, slightly lower than the 0.5% increase seen in August.

On a year-on-year basis, wages rose by 4.0%, compared to 3.9% in the previous month. This steady wage growth indicates a relatively tight labour market where employers are having to offer higher pay to attract workers.

The latest job figures come at a crucial time for the US Federal Reserve. With inflation still a concern, the Fed is closely monitoring the strength of the labour market to decide its future monetary policy. The US central bank has already raised interest rates by 525 basis points over 2022 and 2023, in an effort to bring inflation under control. Last month, the Fed made its first rate cut since 2020.

Fed Chair Jerome Powell has expressed caution about further large rate cuts, stating that the committee does not feel an urgent need for rapid rate reductions.

Powell acknowledged the labour market slowdown, but also pointed out that recent economic data shows the U.S. economy to be in a better position than previously thought. Growth, income, and corporate profits have all been revised upward, signalling a stronger economic backdrop.