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Hiring in the United States picked up significantly more than expected in September while the jobless rate crept lower, according to government data released Friday, offering relief to policymakers ahead of November’s election.
The world’s biggest economy added 254,000 jobs last month, the Department of Labor said. This was markedly higher than August’s 159,000 number, which was also revised higher.
The unemployment rate dipped from 4.2 percent to 4.1 percent, added the report.
The health of the job market has come into focus over recent months as high interest rates bite — but the pick-up in hiring should assuage concerns that the Federal Reserve waited too long to slash rates last month, risking a downturn.
The Fed had rapidly hiked the benchmark lending rate in 2022 to ease demand and tamp down surging inflation. Price increases have eased in recent times, allowing the central bank to begin rate reductions.
In September, average hourly earnings were up 0.4 percent from a month ago to $35.36, slightly above expectations.
The stronger than expected report on Friday likely means the Fed can take a more gradual path to rate cuts, given that the economy appears to be holding up.
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