US job growth soared in September as unemployment fell

US job growth picked up in September, and unemployment fell to 4.1%, decreasing the necessity for the Federal Reserve to keep significant interest rate cuts at its last two meetings this year, News.Az reports citing foreign media.

Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.

Economists had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.

The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.

The labour market slowdown is being driven by tepid hiring against the backdrop of increased labour supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.

Average hourly earnings rose 0.4 percent after gaining 0.5 percent in August. Wages increased 4.0 percent year-on-year after climbing 3.9 percent in August.

The unemployment rate dropped from 4.2 percent in August. It has jumped from 3.4 percent in April 2023, in part boosted by the 16-24 age cohort and the rise in temporary layoffs during the annual automobile plant shutdowns in July.

The US central bank's policy-setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasised growing concerns over the health of the labour market.

News.Az