U.S. Employment Jumps By 119,000 Jobs In September, Much More Than Expected

(RTTNews) - A long-delayed report released by the Labor Department on Thursday showed employment in the U.S. increased by much more than expected in the month of September.

The Labor Department said non-farm payroll employment jumped by 119,000 jobs in September after a revised dip of 4,000 jobs in August.

Economists had expected employment to rise by 50,000 jobs compared to the addition of 22,000 jobs originally reported for the previous month.

"The surprisingly strong September employment figures further throw cold water on another Fed rate cut next month," said Nationwide Chief Economist Kathy Bostjancic.

She added, "The sharp rebound in employment gains, up 119,000 in September following the downwardly revised negative 4,000 print in August soothes concerns that the labor market was on the precipice of a large downturn and removes urgency for another rate cut."

The stronger than expected job growth came as employment continued to trend higher in the healthcare, food services and drinking places, and social assistance sectors.

Meanwhile, the report showed a continued decline in federal government employment as well as a decrease in transportation and warehousing jobs.

The Labor Department also said the unemployment rate crept up to 4.4 percent in September from 4.3 percent in August. The unemployment rate was expected to remain unchanged.

The unexpected uptick by the unemployment rate came as the labor force grew by 470,000 persons, outpacing the 251,000-person increase by the household survey measure of employment.

The report also said average hourly employee earnings climbed by 9 cents or 0.2 percent to $36.67 in September.

Average hourly employee earnings in September were up by 3.8 percent compared to the same month a year ago, unchanged from an upwardly revised reading for August.

The Labor Department noted the publication of the September data was delayed by more than 6 weeks due to the government shutdown and said an October jobs report will not be released as a result of the lapse in federal appropriations.