US economy adds higher-than-forecast jobs, unemployment down to 4.1%

The US economy added more jobs than expected in September, alongside a drop in the unemployment rate and rising wages, indicating the strength of the labor market in the world’s largest economy and boosting confidence that it may avoid slipping into a recession.

According to data released today, Sept. 4, by the US Department of Labor, the economy added 254,000 jobs in September, following an upwardly revised 159,000 jobs added in August, which was raised by 17,000 from the initial estimate.

This compares to expectations of 150,000 jobs added during the same period. The data also showed that the unemployment rate fell to 4.1% from 4.2%, while expectations had it remaining steady.

The number of jobs added in September exceeded both the 12-month average of 203,000 and the 3-month average of 186,000.

Additionally, the average hourly wage increased by 13 cents, or 0.4%, to $35.36, marking a 4% rise on an annual basis. Meanwhile, the average weekly working hours declined by 0.1 hour to 34.2 hours.

The food and beverage services sector was the largest contributor to job growth last month, adding 69,000 jobs, followed by the healthcare sector with 45,000 jobs, government with 31,000, social assistance with 27,000, and construction with 25,000 jobs.

While this positive data bolsters investor confidence in the outlook for the U.S. economy, it may complicate the Federal Reserve’s efforts to continue monetary easing due to concerns that the wage and labor market momentum could reignite inflationary pressures.