OCTOBER 7, 2024 – EMPLOYMENT RISES IN SEPTEMBER
The US job market added 254,000 new jobs in September, the highest level of job growth in six months. The number is almost 100,000 more jobs than the 159,000 reported in August and far higher than expectations of 150,000 jobs. The unemployment rate for September was down 0.1 percent month over month to 4.1 percent. Average hourly earnings were reported up by 0.4 percent for the month and 4 percent for the year, ahead of expectations.
Such strong employment numbers may cause the Fed to slow the pace of interest rate reductions. The Federal Reserve just lowered interest rates by half a percent to a target range of 4.75 to 5 percent, and it was expected that another half a percent cut was coming in November. Should the employment numbers remain solid in October, the best scenario would be 25 basis point cuts at the Fed’s meetings in November and December.