119,000 jobs were created in September, 'double what we expected,' per official report

The Bureau of Labor Statistics (BLS) released Thursday the official employment report for September, weeks late due to the 44-day government shutdown. The document shows that the U.S. economy added 119,000 jobs, well above the Dow Jones consensus estimate, which projected just 50,000.

According to the report, the growth represents a recovery after a downward revision in August, a month that ultimately reported a loss of 4,000 jobs. July's total was also corrected downward to 72,000 jobs created, down 7,000 from the previous reading.

The unemployment rate rose slightly to 4.4%, its highest level since October 2021. The BLS further reported that a broader measure, which includes those who have given up actively looking for work or are working part-time for economic reasons, declined marginally to 8%.

On the wage front, the report recorded a 0.2% monthly increase in average hourly earnings and a 3.8% year-over-year rise, figures that remain in line with a gradual moderation, although the monthly increase fell short of forecasts of 0.3%.

"This is a solid report for the American people, solid report for job growth... more people wanting to work, participate in the labor force. I think these are good numbers," Labor Secretary Lori Chavez-DeRemer said in an interview with Fox Business.

The official assured that September generated "double what we expected" in terms of jobs.

The report, the first since the one released on Sept. 5, ends more than six weeks without official jobs data due to the federal government shutdown, which prevented the BLS and other agencies from compiling statistics.

In sectoral terms, job creation was again concentrated in familiar areas: health care (+43,000), bars and restaurants (+37,000) and social assistance (+14,000). In contrast, transportation and warehousing cut 25,000 jobs, while the federal government lost 3,000, accumulating a reduction of 97,000 so far this year.

The household survey, the basis of the unemployment calculation, offered additional signs of strength: the number of employed people increased by 251,000, and the labor force grew by 470,000, reaching a record 171.2 million. The participation rate rose to 62.4%, its highest level since May.

A delayed report with immediate impact

The report's release had an immediate impact on the markets: stock futures extended gains and bond yields fell, as traders maintained their expectation that the Federal Reserve will not make further rate cuts at its Dec. 9-10 meeting. This will be the last jobs report monetary policymakers will receive before the meeting.

In an additional statement, the Labor Department reported that initial claims fell to 220,000 in the week ending Nov. 15, below expectations.

The BLS confirmed that it will simultaneously release the October and November employment reports on Dec. 9. However, the October report will not include the unemployment rate because the household survey could not be conducted during the government shutdown.