US Adds 263,000 Jobs in September, Exceeding Expectations... Unemployment Rate at 3.5%

U.S. President Joe Biden is taking off his coat while giving a speech at the Inflation Reduction Act (IRA) legislative commemoration event held on the South Lawn of the White House in Washington, D.C., on the 13th of last month (local time). He repeatedly emphasized the achievements of the IRA, highlighting the provision for U.S.-made electric vehicle subsidies as a major accomplishment.
[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Daehyun] The U.S. Department of Labor announced on the 7th (local time) that nonfarm payrolls increased by 263,000 in September.

The job increase was smaller than the 315,000 added in the previous month. It was the smallest increase since April of last year.

However, it was higher than the market experts' forecast of 250,000. By sector, job growth was notable in leisure and hospitality, as well as healthcare.

The unemployment rate recorded 3.5%, which is close to full employment. It fell by 0.2 percentage points from the previous month and was lower than the predicted 3.7%. This figure is similar to the level recorded just before the spread of COVID-19.

The average hourly wage increased by 0.3% compared to the previous month and rose 5% year-over-year.

With this U.S. employment data exceeding Wall Street expectations and confirming a strong labor market, the Federal Reserve (Fed) is expected to continue its interest rate hike policy.

To curb inflation, which has risen to the highest level in 40 years, the Fed took a giant step (a 0.75 percentage point increase in the benchmark interest rate) last month despite global recession concerns. This is the first time the Fed has decided on three consecutive giant steps.