The U.S. economy created 254,000 new jobs in September, exceeding expectations and spotlighting the persistent strength in the national labor market. The results exceeded the consensus estimate by 114,000 jobs. The unemployment rate dipped for the second straight month, sliding to 4.1 percent from 4.2 percent.
Food services and drinking places led the employment gains, creating 69,000 new jobs. This was followed by health care (45,000), government (31,000), social assistance (27,000), and construction (25,000). Manufacturing payrolls shed 7,000. The September jobs data might lower the expectations for the Federal Reserve slashing interest rates by another 50 basis points at the November policy meeting, says Gina Bolvin, the president of Bolvin Wealth Management Group. “With oil prices rising because of Middle East tensions ratcheting up, and average hourly earnings rising, the Fed may worry about inflation rearing its ugly head.