Conflicting Jobs Data: Private Payrolls Weaken While Nonfarm Payrolls Remain Resilient
Job growth in the United States surpassed expectations in September. The U.S. economy added 360,000 new jobs, and subsequent revisions increased the total by an additional 119,000 positions. The unemployment rate remained stable at 3.8%. Wage growth was moderate, rising by 20 basis points from the previous month and by 4.2% compared to the previous year. This data, combined with an increase of approximately 700,000 job openings in August and consistently low levels of weekly jobless claims, indicates that the U.S. labor market is not cooling down as the Federal Reserve had hoped. Throughout most of 2023, the U.S. services sector performed well, while the manufacturing sector faced challenges.