US Economy Adds Surprising 119,000 Jobs in Delayed September Report

The US economy demonstrated unexpected resilience last month. Employers added 119,000 jobs in September, according to a long-delayed government report. The data, released by the Labor Department, finally provides a clear snapshot of the labor market after a seven-week postponement caused by the federal shutdown.

This figure more than doubled the 50,000 jobs economists had forecast. The report offers a mixed but crucial view for policymakers and businesses who had been operating without key data.

September Jobs Report Reveals Underlying Weaknesses

Despite the strong headline number, the delayed report contained some troubling details. Revisions showed the economy actually lost 4,000 jobs in August, a significant downgrade from the initial 22,000 gain. Earlier months were also revised downward, trimming 33,000 jobs from previous totals.

Job growth was also highly concentrated. More than 87% of the September gains were in just two sectors: healthcare and leisure and hospitality. This narrow base raises questions about the expansion’s sustainability across the broader economy. According to Reuters, such concentration is unusual.

The unemployment rate also ticked up to 4.4%. This is the highest level since October 2021. The increase is partly due to 470,000 people entering the labor force, not all of whom found work immediately.

Broader Economic Impact and Fed Policy

The report’s release ends a period of uncertainty for the Federal Reserve. The data makes an interest rate cut at the Fed’s next meeting less likely. Steady hiring suggests the economy may not need additional stimulus to continue growing.

Wage growth showed signs of moderating, a key factor for the Fed. Average hourly earnings rose 3.8% from a year earlier. This brings the figure closer to the 3.5% level that inflation fighters prefer.

The overall job market has been marked by weak hiring but few layoffs. This means employed Americans generally have job security. However, those seeking work often face a difficult search, applying for hundreds of positions with few responses.

The latest jobs data confirms the US labor market is sending mixed signals. While the headline number from the September jobs report beat expectations, the underlying details suggest a more cautious economic outlook is warranted.

Info at your fingertips

Why was the September jobs report delayed?

The report was delayed for seven weeks due to the federal government shutdown. Federal workers were furloughed and could not collect or process the necessary data during that period.

Which industries added the most jobs in September?

Healthcare and social assistance led with over 57,000 new jobs. The leisure and hospitality sector, including restaurants and bars, added 37,000 positions.

How does this report affect Federal Reserve decisions?

The solid hiring makes an immediate interest rate cut less likely. The Fed sees steady job growth as a sign the economy may not need further stimulus at this time.

Were previous job numbers revised?

Yes. The August report was revised to show a loss of 4,000 jobs. Earlier months were also revised down, removing 33,000 jobs from earlier totals.

What is the current unemployment rate?

The unemployment rate rose to 4.4% in September. This is the highest rate recorded since October 2021.