2023-10-06 13:46:00
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By Lucia Mutikani
WASHINGTON (Archyde.com) – U.S. job growth increased in September, indicating that the labor market remains strong enough to prompt the Federal Reserve to raise interest rates once more this year, even though wage growth is trending toward moderation.
The Department of Labor said in its report on jobs issued on Friday, which received great attention, that non-farm payrolls increased by 336,000 jobs last month, and data for August was revised upward to show the addition of 227,000 jobs instead of 187,000 previously.
Economists polled by Archyde.com had expected jobs to increase by 170,000. Estimates ranged between 90,000 and 256,000.
The increase came more than expected despite the provisional jobs data for September tending to the lower level due to issues related to adjustment for seasonal factors related to the return of workers in the education sector to their jobs following the summer vacation.
The current strength of the labor market, 18 months following the US Federal Reserve began raising interest rates, indicates that monetary policy may remain tight for some time.
The unemployment rate remained unchanged at an 18-month high of 3.8 percent.
Most economists do not believe that the US Federal Reserve will raise interest rates once more this year.
Monthly wage growth remained moderate, with average hourly wages increasing 0.2 percent following achieving a similar increase in August. In the 12 months to September, wages increased 4.2 percent following recording a 4.3 percent increase in August.
Wages are still growing faster than the 3.5 percent rate, which economists say is consistent with the US Federal Reserve’s goal of reaching 2 percent inflation.
(Prepared by Salma Najm for the Arab Bulletin – Edited by Ayman Saad Muslim)
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