The US economy added 119,000 jobs in September, far exceeding expectations of 50,000 jobs. The figure was based on the first jobs report since the 44-day government shutdown. August’s figure was revised down to a loss of 4,000 jobs, while July was also revised lower.
The unemployment rate rose to 4.4%, a three-year high, signaling continued weakness in the labor market despite positive job growth.
Wage growth remained moderate with hourly earnings rising 0.2% in the month and 3.8% from a year ago. The reading was mixed in line with market expectations, with monthly gains lower but annual gains slightly higher.
The report ended a data-free period due to the government shutdown, which has hampered investors and policymakers’ ability to gauge economic momentum. The lack of data has added to uncertainty about the direction of the Federal Reserve’s monetary policy.
The release of labor data is expected to help markets and the Fed get a clearer picture of economic strength, especially ahead of a key policy meeting in December.
