U.S. employers added 254,000 new workers to their payrolls in September, significantly surpassing recent average monthly gains, according to the U.S. Bureau of Labor Statistics. The unemployment rate decreased to 4.1%.
The increase in hiring marked the strongest monthly gain since March and exceeded the average monthly gain of 203,000 over the past year. Most industries experienced job growth except for manufacturing (-7,000), transportation and warehousing (-8,600), and temporary help services (-13,800).
In particular, the leisure and hospitality industry saw a rise of 78,000 jobs, with restaurants and bars contributing 69,400 jobs. This was well above the monthly average gain of 14,000 jobs in these sectors over the past year.
The healthcare sector added 45,200 new jobs in September while construction added 25,000 jobs. Other sectors that recorded hiring gains included finance and insurance (+5,700), retail trade (+15,600), professional and business services (+17,000), and social assistance (+26,500).
Overall, the private sector contributed 223,000 jobs in September while the public sector added 31,000. The labor force participation rate remained unchanged at 62.7% for the third consecutive month.
Despite a decrease from August's unemployment rate of 4.2%, it remains higher than September last year when it was at 3.8%.
Average hourly earnings for all employees on private nonfarm payrolls rose by 13 cents or 0.4% to $35.36 in September; this represents a yearly increase of 4%.
Additionally, previously released preliminary data for July and August were revised upward by a total of 72,000 jobs: July's figures increased by 55,000 from an initial count of 89,000 to a revised total of 144,000; August's numbers rose by 17,000 from an original tally of 142,000 to a corrected figure of 159,000.
Following this robust employment report from the federal government in its September Employment Situation release: "The stock market reacted favorably," with major indices such as Dow Jones Industrial Average S&P500 Nasdaq rallying despite earlier losses amid geopolitical tensions in Middle East regions."
