U.S. employers added 254,000 new workers to their payrolls in September, far surpassing recent average monthly gains. Meanwhile, the unemployment rate dipped to 4.1%, the U.S. Bureau of Labor Statistics reported on Friday.
The acceleration in hiring was the strongest monthly gain since March and it exceeded the average monthly gain of 203,000 during the past 12 months. Job gains were widespread among most industries, except for manufacturing (-7,000); transportation and warehousing (-8,600); and temporary help services (-13,800).
Hiring in the leisure and hospitality industry surged by 78,000, including the 69,400 jobs added in restaurants and bars. That number was well above the monthly average jobs gain of 14,000 in restaurants and bars during the past 12 months.
The healthcare sector added 45,200 new jobs in September and the construction industry added 25,000 jobs. Hiring gains were also recorded in the finance and insurance sector (+5,700); retail trade (+15,600); professional and business services (+17,000); and social assistance (+26,500).
In all, the private sector added 223,000 jobs in September and the public sector added 31,000. The labor force participation rate, which captures the percentage of the working-age population that is employed or seeking a job, remained unchanged at 62.7% for the third consecutive month.
Although the national unemployment rate declined on a monthly basis from 4.2% in August to 4.1% in September, it remains higher than September 2023 when the jobless rate was 3.8%.
Average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4% percent, to $35.36 in September. Over the past 12 months, average hourly earnings have increased by 4%.
The September Employment Situation report from the federal government also revised upward the job gains in previously released preliminary data for July and August by 72,000 jobs. The July employment data was revised upward by 55,000 from 89,000 to 144,000. The August job numbers were revised upward by 17,000 from 142,000 to 159,000.
The stock market reacted favorably to the strong jobs report. The Dow Jones Industrial Average, the S&P 500 and Nasdaq all rallied, but the bounce may not completely erase losses that occurred earlier in the week amid rising geopolitical tensions in the Middle East.
