Payrolls Soared By 336,000 In September, Defying Expectations For A Hiring Slowdown
American nonfarm payrolls rose by 336,000 in September, the Labor Department reported Friday, far exceeding analyst expectations of a mere 100,000 increase. The unexpected gains also defied fears of a hiring slowdown due to the US-China trade tensions.
The new report shows major improvement in the jobs market after only a meager 96,000 jobs were added in August. The number of unemployed Americans dropped to 3.5 million for the month, down by 253,000 from August.
The most significant jump in hiring last month took place in the leisure and hospitality sector, which added 127,000 jobs. This represented the largest one-month gain in the sector in over a year.
2017 marked the first year in which hiring in this sector topped 1.2 million jobs, and that number has been steadily rising in recent years. After the industry lost significant ground during the Great Recession, it has since bounced back and is now a major source of employment.
The retail industry also saw gains of 46,000, while manufacturing and healthcare added 26,000 and 34,000 jobs, respectively. The education and financial services sectors also posted gains.
Meanwhile, the labor force participation rate — the percentage of the US population working or looking for work — remained steady at 63.2 percent. This indicates that job opportunities remain plentiful for those who are unemployed or underemployed.
In addition, wages rose more than expected in September, with the average hourly rate up 3.5 percent from a year earlier. This followed an even more impressive gain of 3.9 percent in August.
Overall, the latest jobs report is reassuring for the US economy, and shows that employers are still hiring even as the US-China trade war drags on. It also suggests that the labor market remains healthy and wages are still increasing, which will ultimately benefit American workers.