BusinessSeptember employment report shows robust labor market growth

September employment report shows robust labor market growth

The U.S. labor market saw robust growth in September, with unemployment falling broadly across racial and ethnic groups, according to the Labor Department’s latest report released Oct. 4. Employers added a remarkable 254,000 jobs, far exceeding the projected 140,000, as the unemployment rate edged down to 4.1% from 4.2%, signaling continued strength in the economy.Notably, joblessness among Black and Hispanic workers saw sharp declines. The Hispanic unemployment rate fell to 5.1%, down from 5.5% in August, marking its lowest level since June. 
Black unemployment dropped to 5.7% from 6.1%, reaching a five-month low. White Americans also experienced a reduction, with their unemployment rate falling to 3.6% from 3.8%. Meanwhile, the unemployment rate for Asian Americans remained steady at 4.1%.This continued labor market strength comes as industries that have led job growth this year, including healthcare, government, and construction, maintained their momentum in September. 
The private education and health services sector was the top job creator, adding 81,000 positions. Of those, healthcare alone contributed 45,000 jobs, with gains in home health services, hospitals, and nursing care facilities. 

Leisure and hospitality also showed surprising gains after months of sluggish hiring, adding 78,000 jobs—69,000 of which were from restaurants and bars, a sector benefiting from strong consumer spending.“The economic expansion remains on course for now,” said Chris Rupkey, chief economist at FwdBonds LLC, commenting on the report. “September’s monster jobs number shows the labor market’s resilience, and the outlook for the economy in the months ahead is quite favorable.”Officials said vital job creation is also reflected in rising wages. Average hourly earnings increased by 0.4% for the month, bringing the annual growth rate up to 4%, compared to 3.9% in August. These wage increases, along with the stable job market, offer reassurance that the U.S. economy could avoid the recession that some economists had feared earlier in the year.The Federal Reserve, which has been closely watching employment data as it manages interest rate policy, may now reconsider further aggressive rate cuts. After reducing rates by a half-point in September, the central bank is reportedly expected to opt for a more measured quarter-point cut in November, based on the CME FedWatch Tool. While strong hiring trends and wage growth may lessen pressure on the Fed to take drastic action, officials insisted that they are still committed to adhering to Congress’ mandate to control inflation while maintaining maximum employment.
“There’s really nothing that I can point to in the economy that suggests a downturn is more likely than at any time,” Federal Reserve Chair Jerome Powell said earlier this week, reflecting confidence in the current trajectory of the economy.Despite the positive data, President Joe Biden emphasized that more work remains to be done. In a statement on the September jobs report, Biden highlighted the administration’s progress while calling on Congress to pass critical legislation to support workers and families.“Today, we received good news for American workers and families with more than 250,000 new jobs in September and unemployment back down at 4.1%. Under my administration, unemployment has been the lowest in 50 years, a record 19 million new businesses have been created, and wages are growing faster than prices,” Biden said.He further emphasized the importance of policy action to sustain these gains. “Make no mistake,” Biden asserted. “We have more to do to lower costs and expand opportunity. Congress should pass our plan to build millions of new homes, expand prescription drug price caps, empower workers, protect the right to organize, and cut taxes for hardworking families.”
Biden contrasted these goals with Republican efforts. “Congressional Republicans have a different plan—more giant tax cuts for billionaires and big corporations, ending the Affordable Care Act, and imposing a national sales tax that would raise costs by nearly $4,000 per year for working families,” he said. “While they put billionaires first, we’ll keep fighting to grow the middle class.”

Source: Washington Informer

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