US Posts Solid Job Gains in September but Unemployment Rate Rises to 4.4%

• U.S. job growth accelerated in September, but the unemployment rate increased to a four-year high of 4.4%. The August payroll data was also revised to show employers shedding jobs for the second time this year as employers navigate an uncertain environment.
• The increase in the jobless rate to the highest level since October 2021, reported by the Labour Department in its closely watched employment report on Thursday was from 4.3% in August and reflected more people entering the labour market in search of work. Other data from the Labour Department showed layoffs remained low in mid-November, suggesting the labour market remained in a holding pattern.
• Nonfarm payrolls increased by 119,000 jobs after a downwardly revised 4,000 drop in August, the Labor Department's Bureau of Labour Statistics (BLS) said. Economists polled by Reuters had forecast 50,000 jobs would be added after a previously reported 22,000 gain in August.
• The report was initially due on October 3 but was delayed by the 43-day shutdown of the government. The longest shutdown in history has forced the BLS to cancel the release of October's report, as no data was collected for the household survey to calculate the unemployment rate for that month. October nonfarm payrolls will instead be combined with November's employment report, now due on December 16, the BLS said.
• The labour market has lost significant momentum this year, as evidenced by sharp downward revisions to non-farm payroll counts. Economists and policymakers blame the slowdown on reduced supply and demand for workers. Heading into the economic data blackout, the Bureau of Labour Statistics (BLS) had estimated that about 911,000 fewer jobs were created in the 12 months through March than previously reported. A reduction in immigration that started during the final year of former President Joe Biden's term and accelerated under President Donald Trump's administration has depleted labour supply.
• Some economists believed the September employment report could still influence the Federal Reserve's December 9-10 policy meeting. U.S. central bank officials will not have November's report in hand at that meeting as the release date has been pushed to December 16 from December 5. Minutes of the Fed's October 28-29 meeting published on Wednesday showed many policymakers cautioned that lowering borrowing costs further could risk undermining the fight to quell inflation.
• The rising popularity of artificial intelligence is also eroding demand for labour, with most of the hit landing on entry-level positions, and blocking recent college graduates out of work. Economists said AI was fueling jobless economic growth.

(Source: Reuters)