US Economy Added 254,000 Jobs in September

The U.S. added 254,000 jobs in September, according to the latest report, and unemployment fell from 4.2% to 4.1%. 

For Context: The average monthly job gain over the past year has been 203,000. Economists expected job growth to continue to slow—ZeroHedge (Lean Right bias) put the median estimate at a gain of 125,000 jobs, while CNN Business (Lean Left) estimated a gain of 140,000 jobs, and the Wall Street Journal (Center) estimated 150,000. Earlier this year, the 2024 job gains through March were revised down by 818,000 jobs, while July and August job gains were revised up by a combined 72,000 more than originally reported. 

Did the Fed Make the Right Call?:

• ZeroHedge said that the jobs report shows that the fed's rate cut was a mistake, and "as UBS notes, the moving six-month average on nonfarm payrolls is 167k. The estimate is that 150k is about consistent with a return of the economy to trend growth. Which means that inflation is about to come back with a vengeance, just as the Fed launches its easing cycle."
• A writer at The New York Times (Lean Left) said that the data is good news for the Fed. "Federal Reserve officials have been watching the job market closely, wary that it might be cracking under the pressure of high interest rates. The September employment report does a lot to alleviate those concerns," she said.
• The Fed is expected to cut rates another quarter percentage point when they meet in early November.

The Election: As inflation and the cost of living are major concerns for voters in the upcoming election, a New York Times writer said, "Vice President Kamala Harris probably could not have hoped for a better run of pre-election economic data than what the United States has enjoyed over the last month."