WASHINGTON, Oct 5 (Reuters) - U.S. job growth surged in September, suggesting that the labor market remains strong enough for the Federal Reserve to raise interest rates this year, though wage growth is moderating.
Nonfarm payrolls increased by 336,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Data for August was revised higher to show 227,000 jobs added instead of the previously reported 187,000.
Economists polled by Reuters had forecast payrolls rising by 170,000 jobs. Estimates ranged from 90,000-256,000 jobs. The larger-than-expected increase was despite the tendency for the initial September payrolls print to be biased lower because of seasonal adjustment issues related to the return of education workers after the summer break.
The economy needs to create roughly 100,000 per month to keep up with growth in the working-age population.
I don’t know if it’s related, but there are a lot of laid off tech workers seeking jobs and plenty of work to go around. Many probably took a new position at a pay cut so I’d imagine the “payrolls soared” needs a big asterisk.
Or maybe it’s completely unrelated.