According to new figures released by the U.S. Bureau of Labor Statistics, payrolls jumped by 336,000 in September, defying expectations for a weaker hiring environment amid uncertainty over the upcoming election.
The nonpartisan agency reported that total nonfarm payrolls rose by 336,000 jobs last month as businesses continue to parlay job gains despite the increasing number of confirmed coronavirus cases. This marks the fifth straight month of job gains and the highest one-month payroll gains since the pandemic-induced recession began in February.
The unemployment rate fell to 7.9%, down from 8.4% in August. The nation’s labor force participation rate also increased slightly from 61.7% to 61.8%.
According to the Bureau’s figures, the job gains were concentrated in leisure and hospitality, with the sector adding 145,000 jobs. Professional and business services added 49,000 jobs, while retail trade and health care sectors added 42,000 and 32,000 jobs respectively.
The report also showed encouraging gains in the average hourly earnings, which gained 0.7% compared to last month. The year-on-year increase came in at 4.7%, up from August’s 4.6% uptick.
Economists had been expecting much slower job growth in September due to rising coronavirus cases in many parts of the country. However, the Bureau’s data suggest that many businesses are adapting to the current environment and still adding jobs. This is an encouraging sign for the labor market, with the unemployment rate still above its pre-pandemic levels.
Overall, the Bureau’s report highlights the strong performance of the U.S. economy in the face of the economic disruptions caused by the coronavirus pandemic. It is an encouraging development that employers are managing to adapt to the highly uncertain trading environment.
“September Surprise: Payroll Surge of 336,000 Defies Expectations!
