A long-delayed September employment report released Thursday showed the U.S. economy added 119,000 jobs, a stronger-than-expected gain that nevertheless came wrapped in conflicting signals about the labor market’s health. The report, postponed by the 44-day government shutdown, was the first comprehensive snapshot since early September.
The September payroll increase significantly outpaced expectations of 50,000 and followed a downwardly revised August total that now shows the economy lost 4,000 jobs that month. July’s figures were also revised lower. The unemployment rate, however, rose to 4.4%, the highest level since late 2021, even as a broader measure of labor underutilization ticked down to 8%.
Wage data added to the mixed picture. Average hourly earnings grew 0.2% in September and 3.8% year over year—slower than the monthly forecast but slightly above the annual estimate. The numbers suggest cooling wage pressures alongside ongoing hiring, complicating assessments of overall momentum.
The shutdown created a weeks-long drought of federal economic data, leaving policymakers without key indicators as they weighed interest rate decisions. Thursday’s release is the last employment report the Federal Reserve will see before its December meeting, where officials are widely expected to hold rates steady following earlier cuts in September and October. Market reaction reflected the contradictory signals: stocks climbed on stronger payrolls while bond yields fell as traders focused on the rise in unemployment and moderating wage gains.
Sector-level data also revealed crosscurrents. Health care added 43,000 jobs, bars and restaurants gained 37,000, and social assistance increased by 14,000. But transportation and warehousing shed 25,000 positions, professional and business services declined by 20,000—driven by losses in temporary help—and federal employment fell by 3,000 as part of a broader yearlong contraction.
The household survey, which produces the unemployment rate, offered stronger indicators: employment rose by 251,000, the labor force grew by 470,000 to a record 171.2 million, and the participation rate inched up to 62.4%, its highest since May. Full-time employment jumped by 673,000, while part-time work dropped sharply.
With the September data finally released, the Labor Department plans to publish October and November jobs numbers together on Dec. 16, marking the first full return of labor statistics since the shutdown halted collection efforts.
Source: CNN