By Daily Mail (U.S.) | Created at 2024-10-04 13:26:21 | Updated at 2024-10-04 15:22:29
2 hours ago
The US economy far exceeded expectations for job growth last month, according to new data released Friday.
Employers added an estimated 254,000 jobs in September, according to the Bureau of Labor Statistics.
This is much higher than job growth in August, which was 159,000, and blew economists' expectations for a 140,000-job gain out of the water.
The unemployment rate also dropped to 4.1 percent, despite forecasts it would hold steady at 4.2 percent.
Stocks jumped following the blockbuster report, which provided Wall Street with further reassurance that the labor market is on solid ground. Rallying stocks are also good news for Americans' 401(K) balances, which tend to be invested in the major indices.
Employers added an estimated 254,000 jobs in September, according to the Bureau of Labor Statistics
S&P 500 futures jumped 0.7 percent, while futures tied to the Dow Jones Industrial Average gained 0.5 percent.
The premarket advances marked a significant turn for Wall Street after mounting geopolitical tensions had made for a rocky start to October.
The report also revised job growth figures from August and July.
It added 17,000 to August's total, bringing it to 159,000, and added 55,000 jobs to July's total, upping the monthly growth to 144,000.
These upward revisions should ease concerns about the state of the labor market and likely locks in the Federal Reserve to a more gradual pace of interest rate reductions following its bumper cut last month.
Wall Street was spooked by the initial jobs figures for July, which were lower than expected, and sparked fears that the US was heading into a recession.
As inflation continues to cool, the central bank has reiterated its mandate to ensure there is also no sharp deterioration in the labor market.
'A repeat of September's 0.5 percent rate cut is off the cards as non-farm payrolls blew past all expectations,' said Isaac Stell, Investment Manager at Wealth Club.
'Softer hiring and a rise in the jobless rate worried rate setters last month, there's no sign of that in these numbers.'
This is a breaking news story. Updates to come.
