The September jobs report released Friday provided a key look at the labor market's health as it continues to confront high interest rates and inflation.
U.S. job growth unexpectedly accelerated in September, defying fears of a slowdown in hiring even as the labor market confronts the twin threats of sticky inflation and high interest rates.
Employers added 336,000 jobs in September, the Labor Department said in its monthly payroll report released Friday, nearly double the 170,000 jobs forecast by Refinitiv economists. It marked the best month for job creation since January.
The unemployment rate, meanwhile, held steady at 3.8%.
"The jump in employment, the extremely low level of unemployment claims, and the rise in job openings keep alive the possibility of the Fed raising rates one more time this year," said Kathy Bostjancic, Nationwide chief economist. "Moreover, it underscores that they will be in no hurry to cut rates – higher rates for longer."
Average hourly earnings — a key measure of inflation — increased 0.2% for the month and remain up 4.2% from the same time one year ago. Both figures came in under estimates, a welcome sign for the Federal Reserve.
Fed policymakers have indicated that they are closely watching the report for evidence the labor market is softening after more than a year of interest rate hikes.
This is a developing story. Please check back for updates.
