U.S. Employers Add 119,000 Jobs In September, Surpassing Forecasts Post-Shutdown

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U.S. Employers Add 119,000 Jobs In September, Surpassing Forecasts Post-Shutdown

Business Meeting (File)
Business Meeting (File)

Following a six-week data blackout caused by a recent government shutdown, U.S. employers added a stronger-than-expected 119,000 jobs in September, according to the latest report from the Labor Department. This marks a notable pickup in hiring after prior employment data had indicated a slowdown in the labor market.

The September job tally significantly exceeded the 50,000 payroll gains economists polled by FactSet had forecast, suggesting a burst of activity following a period of decelerating job growth.

However, the unemployment rate saw a slight increase, ticking up to 4.4% in September from 4.3% in August. The report also included revisions to previous months, with job growth for July and August collectively revised down by 33,000, signaling that hiring during those months was weaker than initially reported.

The health care sector was the most significant driver of new employment, adding 43,000 hires in September. This growth stood in contrast to the federal workforce, which shed 3,000 jobs during the month.

Looking ahead, the federal government’s payroll is expected to shrink further. Financial firm Capital Economics estimates that 150,000 federal workers will leave the government’s payroll in the fourth quarter of this year, primarily attributed to the Trump administration’s deferred resignation programs.

The September jobs report, initially scheduled for release on October 3rd, was delayed by the government shutdown, which ended on November 12th. The report thus provides a belated snapshot of the job market just before federal funding lapsed on October 1st.

The Bureau of Labor Statistics (BLS) announced this week that the full October employment report, originally set for November 7th, will not be published. Instead, select October data will be folded into the November report, which is currently scheduled for release on December 16th.

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