- The labor market continues to outpace expectations. September’s nonfarm payrolls surged by 336k, exceeding estimates by over 90%. Revisions added an additional 119k jobs for July and August.
- Hiring saw a broad-based increase, notably in leisure and hospitality, health care, and professional and business services.
- Unemployment held at 3.8%, with wages up 0.2% month-over-month and 4.2% year-over-year.
- The report is considered a blowout as it marked the largest payroll boost since January.
- Data from ADP showed that private employers added 89k new payrolls, down significantly from 177k in August – marking the third straight month of declining employment growth.
- The current strength in the labor market could prompt the Fed to raise interest rates again before the end of the year, which are already at a 22-year peak.
- In light of the labor market’s strength, the Fed may hike rates again before the end of the year, which are already at a 22-year high.
Source: Helios Quantitative Research, Bloomberg, Bureau of Labor Statistics, Automatic Data Processing, Inc.