U.S. nonfarm payrolls increased by 119,000 jobs in September, surpassing analysts’ expectations of 50,000.
The unemployment rate rose to 4.4%, the highest since October 2021, due to more people entering the labor market.
The big picture: August’s job total was revised down to a loss of 4,000 jobs from an earlier reported gain.
- The healthcare sector led job growth with 43,000 new jobs, mainly in ambulatory services and hospitals.
- Employment at restaurants and bars grew by 37,000; social assistance jobs increased by 14,000.
- Transportation and warehousing lost 25,000 jobs; federal government payrolls declined by 3,000 in September, totaling a 97,000 loss since January.
Driving the news: The government shutdown delayed the October employment report; October and November payroll data will be combined and released December 16.
- Reduced immigration during recent administrations has significantly depleted labor supply, contributing to slower job growth.
- Economists estimate 30,000 to 50,000 job creations per month are now needed to keep pace with working-age population growth, down from 150,000 earlier in 2024.
- About 470,000 people entered the labor force in September, but only 251,000 found jobs.
- AI advances are reducing demand for entry-level jobs, hindering employment for recent college graduates.
