Unexpected strength in the September employment numbers for the United States were released by the U.S. Bureau of Labor Statistics this morning. Total nonfarm payroll employment rose by 336,000 in September, and the unemployment rate was unchanged at 3.8 percent.
The strong employment numbers for September and the past three months suggest the Federal Reserve Board might raise the interest rate target again.
Surging interest rates are intensifying the challenges for the U.S. economy and threatening to derail the Federal Reserve’s drive to tame inflation without causing a deep recession.
Since mid-summer, the yield on the 10-year Treasury note has steadily climbed, causing a spillover rise in other borrowing costs. The costs of mortgages, auto loans and credit card debt have all risen in response. The jump in longer-term rates coincides with other threats, from higher gas prices and this week’s resumption of student loan payments to autoworkers’ ongoing strike and the risk of a government shutdown in November.
Looking at the September employment report, job gains reportedly happened in leisure and hospitality; government; health care; professional, scientific, and technical services; and social assistance.
The change in total nonfarm payroll employment for July was revised up by 79,000, from +157,000 to
+236,000, and the change for August was revised up by 40,000, from +187,000 to +227,000. With these
revisions, employment in July and August combined is 119,000 higher than previously reported.
