HomeEconomic IndicatorSeptember sees an unexpected surge in job growth in the United States

September sees an unexpected surge in job growth in the United States

U.S. Jobs Growth Surges in September, Impacts Fed Policy

Investing.com — In a surprising turn of events, job growth in the U.S. experienced a significant surge in September. The unemployment rate and wage growth remained steady, indicating a persistent tightness in the labor market. These factors could potentially impact the Federal Reserve’s monetary policy for the remainder of the year.

The Labor Department reported that job growth increased by 336,000 last month, surpassing the economists’ estimated figure of 170,000. Additionally, the data for August was revised, showing that 227,000 jobs were added instead of the previously reported 187,000.

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Wage growth saw a month-on-month increase of 0.2%, which was consistent with the previous month’s figure and slightly below projections of 0.3%. The unemployment rate remained unchanged at 3.8%, slightly higher than the expected rate of 3.7%.

Recent data has presented a narrative of a resilient labor market that may be gradually softening. Weekly initial applications for unemployment benefits saw a weaker-than-anticipated increase, and wage gains in August were lower than expected.

Both markets and policymakers are closely monitoring any signs of strength in the job market. The Federal Reserve has been actively raising interest rates, driven by the belief that labor demand would decrease, leading to a slowdown in wage gains and a reduction in inflationary pressures.

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The release of the jobs report led to an increase in U.S. Treasury yields, which had already reached 16-year highs earlier in the week. Yields move inversely to prices. Charles Schwab’s Fixed Income Strategist Kathy Jones noted that the rise in yields reflects expectations that the labor figures could support another Fed rate hike before the end of the year.

Conversely, the U.S. dollar index, which measures the value of the dollar against a basket of other currencies, experienced an upward movement, while stock futures on Wall Street turned negative.

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