WASHINGTON (AP) — America’s employers added a surprisingly strong 254,000 jobs in September, easing concerns about a weakening labor market and suggesting that the pace of hiring is still solid enough to support a growing economy.
Last month’s gain was far more than economists had expected, and it was up sharply from the 159,000 jobs that were added in August. And after rising for most of 2024, the unemployment rate dropped for a second straight month, from 4.2% in August to 4.1% in September, the Labor Department said Friday.
The latest figures suggest that many companies are still confident enough to fill jobs despite the continued pressure of high interest rates.
In an encouraging sign, the Labor Department also revised up its estimate of job growth in July and August by a combined 72,000. Including those revisions, September’s job gain — forecasters had predicted only around 140,000 — means that job growth has averaged a solid 186,000 over the past three months. In August, the three-month average was only 140,000.
“There’s still more momentum than we had given it credit for,” Stephen Stanley, chief economist at the banking company Santander, said of the job market. “I would call it solid — certainly not as explosive as what we were seeing last year or the year before, when we were catching up from the pandemic. But the pace of job growth overall is very healthy.’’