September Jobs Number much stronger than expected -
briefing -
Nonfarm payrolls rose a much stronger than expected 336,000 (Briefing.com consensus 158,000) and upward revision to July and August summed to an additional 119,000 jobs than previously thought. That was a shocker for the market given the soft ADP employment change reading seen earlier this week, but to be fair, maybe it should not have been a shocker given that initial jobless claims have been running at low levels consistent with a tight labor market.
There was a bit of moderation in average hourly earnings growth to 4.2% year-over-year from 4.3% in August, but when that is balanced with the unchanged 3.8% unemployment rate, the dip in the U6 unemployment rate, and the clear and continued strength in hiring activity, this labor market is not going to be labeled a weak labor market.
The key takeaway from the report is that it bodes well for the economy. That is good news, yet that good news is apt to translate in the market's mind into a stubborn Fed standing on guard to possibly raise rates again but certainly not cut them anytime soon.
September nonfarm payrolls increased by 336,000 (Briefing.com consensus 158,000). The 3-month average for total nonfarm payrolls increased to 266,000 from 189,000. August nonfarm payrolls revised to 227,000 from 187,000. July nonfarm payrolls revised to 236,000 from 157,000.
September private sector payrolls increased by 263,000 (Briefing.com consensus 150,000). August private sector payrolls revised to 177,000 from 179,000. July private sector payrolls revised to 145,000 from 155,000.
September unemployment rate was 3.8% (Briefing.com consensus 3.7%), versus 3.8% in August. Persons unemployed for 27 weeks or more accounted for 19.1% of the unemployed versus 20.3% in August. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.0% versus 7.1% in August.
September average hourly earnings were up 0.2% (Briefing.com consensus 0.3%) versus 0.2% in August. Over the last 12 months, average hourly earnings have risen 4.2%, versus 4.3% for the 12 months ending in August.
The average workweek in September was 34.4 hours (Briefing.com consensus 34.4), versus 34.4 hours in August. Manufacturing workweek held steady at 40.1 hours. Factory overtime unchanged at 3.1 hours.
The labor force participation rate held steady at 62.8%.
The employment-population ratio held steady at 60.4% for the third straight month.
