Total nonfarm payroll rose by 254,000 in September, the largest gain since March of this year, according to data from the U.S. Bureau of Labor Statistics. The unemployment rate dropped slightly to 4.1%.
BLS noted that the unemployment rate as well as the number of unemployed people are both higher than the same time last year, but economists largely called the report “good news” for workers.
“Today’s strong Jobs Report indicates a healthier job market as we look towards the back quarter of the year,” Edward Hearn, lead economist at UKG, said in a statement. “This growth is indicative of a dynamic shift in the labor market.”
Part of that shift includes the fast-approaching holiday season, expected wage increases due to a tight labor market, and improved consumer sentiment thanks to lower interest rates, Hearn said.
Additionally, July and August saw upward revisions totaling a net gain of 72,000 more jobs than previously reported, indicating a healthier job market than expected, economists said. And the unemployment rate dropped for “all the right reasons,” noted Andrew Flowers, chief economist at Appcast, in a statement. Labor force participation increased and fewer workers were unemployed, he said, as opposed to workers falling out of the job market entirely.
Notably, quits trended downward, according to the Job Openings and Labor Turnover Summary released Oct. 1 from BLS, meaning employees may be unwilling to leave out of concern for the stability of the market.