U.S. employers added 263,000 new jobs in September, down from 315,000 new jobs created in August, marking the 21st straight month of job growth, and coming in under economists’ forecasts, according to the latest employment report from the U.S. Bureau of Labor Statistics (BLS). The unemployment rate dropped to 3.5 percent and average hourly earnings increased 0.3 percent month over month and 5 percent from a year ago.
While total employment is consistently falling, it’s still strong. The monthly average job growth prior to the pandemic was around 200,000. The continuing slowdown in demand for labor and muted wage growth should soften the pressure on decades-high inflation roiling the economy. The Federal Reserve has raised rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the end of the year.
The BLS reported earlier this week that the number of open positions plunged by more than 1 million in August, providing the first sure sign that the labor gap between supply and demand is beginning to close. Despite persistent demand for workers, labor force participation rates have remained stubbornly below pre-pandemic levels.
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