Due to a robust job market, the Federal Reserve will likely continue its aggressive monetary policy tightening effort for some time. In September, U.S. firms employed more people than anticipated as the unemployment rate fell to 3.5%.
Though people exiting the workforce contributed to the two-percentage-point drop in the unemployment rate from 3.7% in August, the Labor Department’s carefully anticipated employment data on Friday also indicated that fewer Americans worked part-time for economic reasons in September. The labor market has remained resilient despite the Fed’s significant interest rate increases.
The establishment survey revealed that nonfarm payrolls expanded by 263,000 jobs in September after increasing by an unrevised 315,000 jobs in August. This year, the number of new jobs added has decreased from the monthly average of 562,000 in 2021 to an average of 420,000.
According to Reuters, economists predicted employment growth of up to 250,000, with ranges from 127,000 to 375,000. The projected unemployment rate remained at 3.7%.
The leisure and hospitality sector, which saw payrolls rise by 83,000 positions, was the industry with the largest gain in employment. Restaurants and bars saw the majority of the gains. However, there are still 1.1 million fewer jobs in leisure and hospitality than there were before the pandemic.
In September, the healthcare industry gained 60,000 jobs, bringing employment levels back to what they were prior to the epidemic. The rate of employment in the professional and business services sector grew by 46,000. Despite the home sector being hit hard by the rising borrowing prices, manufacturing generated 22,000 employment and construction added 19,000 roles.
Employment in the wholesale trade increased as well, although the financial activities sector lost 8,000 positions. Additionally, 8,000 jobs were lost in the transportation and warehouse industry.
American stocks started off lower. In relation to a currency basket, the dollar increased. Prices for U.S. Treasuries dropped.
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