The U.S. economy added 255,000 jobs during the month of September, helping lower the nation's unemployment rate to 4.1% in a surprisingly strong jobs report released by the government's Bureau of Labor Statistics on Friday.
The report also revised July and August figures, which showed the U.S. added 77,000 more jobs than previously thought.
The unemployment rate ticked down to 4.1% in September after hitting 4.3% in July, the highest it had been since October 2021, and 4.2% in August. In historical terms, a 4.1% unemployment rate is low, but it comes after a period of near-record-low unemployment. The unemployment rate bottomed at 3.4% in 2023.
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The U.S. has had a solid year of job gains. In the last decade, the U.S. averaged about 166,000 new jobs per month. In the last 12 months, the U.S. has averaged 203,000 new jobs per month, bringing the total number of U.S. non-farm jobs to over 159 million.
Average hourly wages increased 13 cents in September to $35.36. Workers are making an average of $1.35 an hour more than a year ago. Average weekly wages were $1,209 in September, up from $1,169 a year ago. The 3.4% increase in wages is outpacing inflation. As of August, the consumer price index was up 2.5% compared to a year earlier.
Friday's job report was expected to play a key role in determining whether the Federal Reserve will implement another interest rate drop next month. In September, the Federal Reserve announced its first interest rate cut after rates reached a 23-year high in 2023 and 2024. Interest rate hikes were implemented to try to slow inflation. High interest rates typically slow hiring. But in 2023-24, hiring has remained strong in spite of the inflated interest rates.
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