In September, the United States experienced a significant increase in employment, marking the most substantial growth in eight months.
This surge in hiring was widespread, indicating a persistent strength in the labour market. This development potentially provides the Federal Reserve with the rationale to consider raising interest rates once again, although it’s worth noting that wage growth is currently decelerating.
The Labour Department’s latest employment report, released on Friday, revealed a nonfarm payroll increase that surpassed expectations, along with substantial upward revisions to job counts for July and August. These findings solidify the belief that economic activity gained momentum in the third quarter.
The continued resilience of the labour market and the broader economy, even after 18 months of the US central bank’s efforts to temper demand by raising rates, suggests that monetary policy may remain restrictive for an extended period.
Recent data also indicates an increase in job openings in August, coupled with consistently low first-time applications for state unemployment benefits in September.