WASHINGTON: US employers stepped up their hiring pace unexpectedly in September while unemployment held steady, government data showed on Friday, adding pressure on policymakers seeking to cool the economy.
The US economy added 336,000 jobs last month in the highest surge since January, and the jobless rate was unchanged at 3.8 percent, said the Labor Department.
This adds to signals that the American job market remains robust despite efforts by the central bank to cool the world’s biggest economy and lower inflation sustainably.
When the Federal Reserve lifts interest rates and borrowing costs rise, this can dampen hiring associated with business expansion and the jobless rate is generally expected to tick up.
But for now, the pace of hiring hovers above pre-pandemic levels and unemployment is still around a historically low level, meaning that Fed officials could consider further policy action.
Analysts, however, have warned that the job market could weaken going forward as it takes time for existing policy changes to ripple through the economy.
In September, sectors that saw job gains included leisure and hospitality, government as well as health care, said the Labor Department.
An area contributing to the increase was education with the government sector adding 73,000 jobs — mainly teachers for the new school year — noted EY chief economist Gregory Daco.
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