U.S. job growth in September powered past most expectations by a wide margin, with total nonfarm payroll employment increasing by 254,000. That number, from the U.S. Bureau of Labor Statistics, showed the biggest gains were in food services and drinking places (restaurants and bars), which created 69,000 jobs in September, well above the average monthly gain of 14,000 over the prior 12 months.
Other sectors seeing an uptick were health care, government, social assistance and construction. The retail sector’s employment was flat for the period. Overall, the total nonfarm payroll employment increase in September was higher than the average monthly gain of 203,000 over the prior 12 months.
In its review of the numbers, J.P. Morgan Wealth Management said that the reported stat for September blew past expectations of 142,500 for the period. “The July and August jobs reports were also revised higher, up 55,000 and 17,000, respectively,” the report states. “This upside surprise defies fears that the labor market is breaking.”
Overall, the September jobs report “underscores our strategists’ calls for a soft economic landing and a gradual pace of Federal Reserve rate cuts from here,” J.P. Morgan noted.
