economy and politics

US: unemployment falls to 4.1% in a sign that the labor market remains solid

US: unemployment falls to 4.1% in a sign that the labor market remains solid

U.S. employers added a surprisingly strong 254,000 jobs in September, the latest evidence that the U.S. labor market is still strong enough to support steady hiring and a growing economy.

Last month’s hiring surge was up sharply from the 159,000 jobs added in August, and unemployment fell from 4.2% to 4.1%, the Labor Department said Friday.

The latest figures suggest that many companies are still confident enough to fill jobs despite the continued pressure of high interest rates. Few employers are laying off workers, although many have become more cautious about hiring.

In its report on Friday, the Labor Department also revised up its estimate of job growth in July and August by a combined total of 72,000.

September’s job gains were quite large, a healthy sign. Restaurants and bars added 69,000 jobs. Health care companies gained 45,000, government agencies 31,000, social assistance employers 27,000 and construction companies 25,000. A category that includes professional and business services added 17,000 after losing jobs for three straight months.

Average hourly increases were also solid. They rose a more than expected 0.4% since August, slightly less than the previous month’s 0.5% increase. Measured against a year ago, hourly wages rose 4%, up slightly from a 3.9% year-over-year increase in August.

The economy’s progress in taming inflation led the Federal Reserve last month to cut its benchmark interest rate for the first time in more than four years. The Fed said it wanted to ease the cost of borrowing to help boost the labor market.

The resilience of the economy has been a relief. Economists expected the Federal Reserve’s aggressive campaign to control inflation (it raised interest rates 11 times in 2022 and 2023) to trigger a recession. It wasn’t like that. The economy continued to grow even in the face of rising borrowing costs for consumers and businesses.

[Con información de The Associated Press]

Connect with the Voice of America! Subscribe to our channels YouTube, WhatsApp and to the newsletter. Turn on notifications and follow us on Facebook, x and instagram.



Source link