The US economy marked a significant surge in job growth this September, adding 336,000 jobs and maintaining the unemployment rate at 3.8%, despite ongoing labor shortages. This unexpected increase could influence the Federal Reserve's stance on future interest rate hikes as it continues to grapple with inflation.
Hourly wages saw a modest rise of 0.2%, signaling a return to wage growth levels seen prior to the pandemic. Both government and private sectors played a part in this job creation, with hospitality and healthcare industries at the forefront. The labor-force participation rate held steady at a post-pandemic high of 62.8%, mirroring consistent demand for goods and services during a third-quarter GDP surge.
In response to these developments, markets reacted positively on Friday. The Dow Jones Industrial Average DJIA and S&P 500 SPX recovered from early losses, while the yield on the 10-year Treasury rose to 4.78%. This upbeat market response reflects investor optimism following the announcement of increased job growth and stability in the labor market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.