Job growth in the United States picked up pace in September, even as the unemployment rate climbed to 4.4% and the economy shed jobs in the previous month—signaling an ongoing slowdown in the labor market.
The U.S. Bureau of Labor Statistics reported on Thursday that nonfarm payrolls increased by 119,000 jobs in September, following a downwardly revised loss of 4,000 jobs in August.
Economists surveyed by Reuters had expected a gain of only 50,000 jobs, especially after earlier estimates suggested an increase of 22,000 jobs in August. The unemployment rate at that time stood at 4.3%.
The September report was originally scheduled for release on October 3, but it was delayed due to a 43-day government shutdown, the longest in U.S. history. The shutdown also forced the cancellation of the October jobs report because the household survey required to calculate the unemployment rate was not conducted.
The Bureau noted that October’s nonfarm payroll data will be combined with the November employment report, set to be released on December 16.
Although the September data is now somewhat outdated, the report showed little change in labor market dynamics. The job market has lost significant momentum this year, reflected in sharp downward revisions to earlier payroll figures.
Additionally, declining immigration levels—a trend that began in the final year of President Joe Biden’s term and accelerated under President Donald Trump—have tightened the labor supply, further weighing on hiring and labor market recovery.
