U.S. Employers Added Surprisingly Solid 119K Jobs in September/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. added 119,000 jobs in September, far surpassing expectations despite a delayed report caused by the government shutdown. The unemployment rate ticked up slightly to 4.4%, as job creation slows compared to post-pandemic peaks. The report arrives ahead of a crucial Federal Reserve meeting on interest rates.
September Jobs Report Quick Looks
- U.S. added 119,000 jobs in September—more than double expectations.
- Unemployment rose slightly to 4.4% from 4.3% in August.
- Report delayed seven weeks due to federal government shutdown.
- August job totals were revised from +22,000 to -4,000.
- Annual revisions show 911,000 fewer jobs created than first reported.
- Monthly average since March dropped to just 53,000 new jobs.
- Fed divided on whether to cut rates again in December.
- October’s full jobs report canceled; partial data to arrive Dec. 16.
Deep Look
September Jobs Report Reveals 119,000 New Jobs Despite Delays and Economic Pressures
In a long-delayed but closely watched release, the U.S. Labor Department reported Thursday that employers added 119,000 jobs in September—offering a surprisingly strong signal for an economy clouded by uncertainty. The update, postponed for seven weeks due to a prolonged government shutdown, came as investors, businesses, and policymakers anxiously awaited clarity on the state of the labor market.
Economists had forecast a modest gain of around 50,000 jobs, making the reported total more than double expectations. However, the unemployment rate inched upward to 4.4% from August’s 4.3%, indicating a slight softening in the broader labor picture.
The report also included a downward revision of August’s figures. Originally estimated at a 22,000-job gain, the month’s performance was corrected to a net loss of 4,000 positions.
Shutdown Created Data Blind Spot for Policymakers
The report’s delay was caused by the 43-day government shutdown, which left federal workers furloughed and unable to gather or process key labor statistics. This created a significant gap in economic insight during a period marked by inflation concerns, high interest rates, and uncertainty stemming from President Donald Trump’s expansive tariff initiatives.
The shutdown also impacted future labor data. The Labor Department has confirmed it will not release a full October jobs report, citing the inability to calculate the unemployment rate during the furlough period. Instead, partial October job data will be combined with the full November report, now scheduled for December 16.
Trump’s Economic Policies and Fed Rate Debate
The September jobs report arrives at a critical moment as the Federal Reserve prepares to meet December 9–10 to determine whether to lower interest rates for a third time this year. Fed officials remain divided, with some concerned about slowing growth and others focused on inflation control.
Key to that debate is the performance of the labor market, which has shown signs of fatigue. Job creation has steadily slowed since the post-COVID hiring boom, when employers were adding an average of 400,000 jobs per month. By comparison, the average has dropped to 53,000 per month since March.
Long-term revisions have also reshaped perceptions of the labor recovery. The Labor Department revised down job creation figures for the 12 months ending in March by 911,000 positions, showing that monthly averages over that period were just 71,000 jobs—not the originally reported 147,000.
High interest rates—implemented to combat the 2021–2022 inflation surge—continue to weigh on hiring, especially in sectors like construction and manufacturing. Compounding the strain is President Trump’s renewed push for global tariffs and import taxes on goods ranging from copper to foreign entertainment, further complicating the economic landscape for business owners and investors alike.
Employment Dynamics Shift With Immigration Crackdown
Adding to the evolving employment dynamics is Trump’s crackdown on illegal immigration. While the policy is expected to limit the labor supply by reducing the number of job-seeking immigrants, it could also ease wage pressures and reduce the number of jobs needed to keep the unemployment rate stable.
For now, the September report stands as the final full data set the Federal Reserve will review before its key December meeting. With October’s full report unavailable, this adds extra weight to Thursday’s numbers in influencing any policy changes ahead of year-end.
Businesses, markets, and economists alike will be parsing these figures closely in the coming weeks. While job growth beat expectations, the underlying signs—slowing monthly averages, revised job totals, and rising unemployment—paint a more nuanced picture of a labor market at a turning point.
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