US job growth surges in September

US job growth surges in September

KUWAIT: US employment unexpectedly surged in September, continuing to illustrate a resilient labor market acting as a key source of strength for household spending and the broader economy. Nonfarm payrolls increased 336,000 last month while the unemployment rate held at 3.8 percent, and wages gained at a modest pace. Data for August was revised to show 227,000 were added instead of the previous reading of 187,000.Average hourly earnings increased 0.2 percent last month, up 4.2 percent from a year earlier, marking the smallest annual advance since mid-2021.

While the data showed no drag on the labor market from the recent strikes that will probably change with the October employment report. Looking at the Fed, the labor market’s strength threatens the central’s banks progress on curbing inflation. The figure, alongside other data like the recent pickup in job openings, bolsters the case for another interest rate hike this year. The Fed’s rate is already at a 22-year high at 5.25-5.5 percent, and most central bank officials expect one more increase in 2023 and a slower pace of cuts over the next two years.

Market expectations rose to a 32 percent probability of a 25 bps hike by the Fed at the next meeting,