According to the September jobs report also known as the Employment Situation Summary, released by the U.S. Bureau of Labor Statistics (BLS) for September, 336,000 jobs were added to the United States economy by employers from different sectors. It is the largest job rise since January and it came far above the expectations that economists did forecast for September.
The good news is that with the 336,000 jobs added in September, it means 13.9 million jobs have so far been added since President Joe Biden took office. The strong jobs report has created optimism by the Federal Reserve that the economy is on course to nail that elusive soft landing without pushing the economy into a recession.
What is The US Jobs report?
The jobs report which is usually released on the first Friday of every month is based on surveys of households and employers. It usually estimates the number of people on payrolls in the United States economy, the average number of hours they worked weekly, as well as their average hourly earnings.
The jobs report provides estimates by state and metropolitan area, and by industry. The report also tallies the hours worked and earnings of production and non-supervisory employees.
What are Economists Saying?
Economists believe that this report is the highest the labor force participation has likely been since President Joe Biden took office. It is another star added to the crown of Bidenomics.
Though the labor market being strong is a good thing, economists believe that at a time like this, a higher jobs report might trigger a conflict between the labor market and the economy. A school of thought on this matter suggests that job growth is not slowing even though the effects of inflation are constantly being felt by all Americans. Some economic experts say this is not a good thing, but others don’t think a strong labor market is a bad thing. They say this jobs report indicates that the economy is beginning to feel the soft landing that the Federal Reserve has been hoping for.
Summary of the September Jobs Report
The unemployment rate has maintained a steady rock at 3.8 percent according to the report. The U.S. gained 336,000 jobs in September reflecting the effect of high interest rates on the U.S. economy.
- Gov +73,000
- Restaurants and bars +61,000
- Manufacturing +17,000
- Healthcare +41,000
- Other services +234,000
- Business services +19,000
- Leisure and Hospitality +96,000
- Goods-producing Industries +29,000
- Child care services +3,000
How will the Fed react to the September jobs report?
There are speculations all across the country that more jobs at a time like this might mean Americans are taking more than one job.
September job gains indicate that the U.S. economy is staying strong despite higher interest rates which might make the Federal Reserve raise interest rates this month. Investors are still warning that the Fed’s hiking rate again could harm the economy because though these job numbers are positive, there’s still reason to worry that the Fed’s actions including any rate hikes in October could harm the labor market.
How Investors are reacting
Stocks started to fall immediately after the report. The Dow later rose more than to higher points after hours of trading. Stocks on Friday finally ended mostly higher. Wall Street is still trying to shake off fears that the Federal Reserve may start hiking rates again later this month.
