US job market: Payrolls increase by 263,000, unemployment rate nosedives to 3.5% in September. See details

In contrast to the Dow Jones projection of 275,000, the number of nonfarm payrolls climbed by 263,000 for the month of September. Contrary to expectations, the unemployment rate was 3.5% instead of 3.7% as the labour force shrank by 57,000 people and the participation rate dipped to 62.3%.

A more comprehensive metric that considers discouraged workers and those who hold part-time jobs for financial reasons saw a steeper fall, from 7% to 6.7%.

The payroll growth in September was less than the 315,000 gain in August and matched the smallest monthly increase since April 2021.





After the news was released, stock market futures declined, and yields on government bonds increased. The Federal Reserve is trying to contain inflation, so investors were watching the statistics for a sign of how it will respond.

In the carefully watched pay data, average hourly wages increased 5% from a year ago and 0.3% on the month, both in line with forecasts. This growth is significantly higher than the pre-pandemic average but was 0.1 percentage points behind the forecast.

Leisure and hospitality led the way with an increase of 83,000 employees but fell 1.1 million short of its pre-pandemic levels in February 2020.

Frequently Asked Questions

1. Which sectors added employees in US?
   Healthcare increased by 60,000, professional and business services increased by 46,000 and manufacturing increased by 22,000 in other sectors. The wholesale trade rose by 11,000, while construction increased by 19,900.
2. Which sectors witnessed job losses?
   Around 8,000 jobs were lost in financial activities, transportation and warehousing combined.