A report from the Labor Department, released on Friday and closely monitored by economists, revealed that U.S. employment levels significantly exceeded expectations for September. The report indicates that non-farm payroll employment surged by 254,000 positions in September, following an upward revision to 159,000 jobs in August.
Economists had anticipated a rise of just 140,000 jobs, compared to the initially reported increase of 142,000 for the previous month. This robust job growth can be largely attributed to significant employment increases in sectors such as leisure and hospitality, which added 78,000 jobs, and health care and social assistance, which saw an increase of 71,700 jobs.
Additionally, the unemployment rate saw a slight decline, falling from 4.2 percent in August to 4.1 percent in September, contrary to economists' expectations of it remaining steady. This unexpected decrease is due to a substantial increase in employment as measured by the household survey, which reported a rise of 430,000 individuals, surpassing the 150,000 increase in the labor force.
Chris Zaccarelli, Chief Investment Officer at Independent Advisor Alliance, commented, "The job market had been weakening this year, but it now appears to be strengthening. This should temporarily dispel concerns that the economy is on the brink of a downturn or facing immediate crisis."
The report also highlighted a rise in average hourly earnings for employees, up by $0.13 or 0.4 percent, reaching $35.36 in September. This brought the annual wage growth rate to 4.0 percent, a slight increase from 3.9 percent in August.