WASHINGTON | The nation’s employers added 336,000 jobs in September, an unexpectedly robust gain that suggests that many companies remain confident enough to keep hiring despite high interest rates and a hazy outlook for the economy.
Friday’s report from the Labor Department showed that hiring last month jumped from a 227,000 increase in August, which was revised sharply higher. July’s hiring was also healthier than initially estimated. The economy has now added a healthy average of 266,000 jobs a month in the past three months.
The unemployment rate was unchanged at 3.8%.
The job market has defied an array of threats this year, notably high inflation and the rapid series of Fed interest rate hikes that were intended to conquer it. Though the Fed’s hikes have made loans much costlier, steady job growth has helped fuel consumer spending and kept the economy growing.
The September hiring report comes at a time when the Fed is scrutinizing every piece of incoming economic data to decide whether it needs to raise its benchmark rate once more this year or instead just leave it elevated well into 2024.
Job growth has remained resilient for most of the past 2 1/2 years even after high inflation flared and the Fed jacked up interest rates at the fastest pace in four decades.
Yet additional threats to the economy have emerged in recent weeks, including much higher long-term interest rates, rising energy prices, the resumption of student loan payments, widening labor strikes and the ongoing threat of a government shutdown.
The job market has been so strong for so long that a slowdown, as long as it remains gradual, would still keep it at healthy levels. The number of Americans seeking unemployment benefits, which tends to track the pace of layoffs, has remained persistently low. Many companies are reluctant to shed workers after having found it difficult to staff up again after the 2020 pandemic recession ended with a quick and robust recovery.
And surveys by the Institute for Supply Management, a trade group of purchasing managers, found that both manufacturing and services companies kept adding jobs last month. Among banks, restaurants, retailers and other service sector companies, hiring accelerated in September compared with August, according to the ISM.
The Fed’s benchmark rate stands at a 22-year high of roughly 5.4% after 11 hikes beginning in March 2022. The central bank’s rate increases have led to much higher borrowing costs for consumers and businesses across the economy.
On the one hand, Fed officials, including Chair Jerome Powell, have stressed that inflation remains too far above their 2% target and that another rate hike might be needed to slow it to that level. At the same time, several Fed policymakers have underscored that they want to be careful not to raise borrowing rates so much as to trigger a deep recession.
After a period in the spring when traders seemed to expect the Fed to reverse course and cut interest rates soon, the financial markets now recognize that the central bank will keep its key rate elevated well into 2024. That’s one reason why the yield on the 10-year Treasury note has surged since July, reaching a 16-year high this week before slipping to 4.7% Thursday.
The 10-year yield is a benchmark rate for other borrowing costs, including mortgages, auto loans and business borrowing. The average rate on a fixed 30-year mortgage jumped to nearly 7.5% this week, the highest level in 23 years. The higher yield has, in turn, punished stocks: The S&P 500 stock index has tumbled 7.2% since late July.
Goldman Sachs has estimated that the economy’s growth in the current October-December quarter could slow to an annual rate as low as a 0.7%, sharply below a roughly 3.5% pace in the July-September quarter.
Biden has created and added more job than any other president with his infrastructure bill. Biden has brought jobs home from China and yet the media is mostly silent about these jobs making the US safer. As for the economy, our is twice as low or more than any country in the world but morons think the republicans can do better. The economy always suffers under republicans, this is a fact. As for US deficit, the republicans only scream about it when the president is a democrat, they never have anything to say when it’s a republican president.
Because labor has demanded higher pay and benefits and received it the greedy corporations are gouging us with higher prices on everything from commodities, utilities etc to steal back the higher paychecks. And lastly, democrats introduced a anti gouging bill in congress to stop the stealing but republicans blocked it and then voted it down. Republicans believe in Keep them Poor and miserable and blame it on the democrats. Democrats have tried for years to reform immigration and republicans have blocked that too. Right now all over South American American corporations are dropping fliers telling people to come to American the border is open and we have jobs if you come here.
A DAY IN THE LIFE OF JOE REPUBLICAN
Joe gets up at 6 a.m. and fills his coffeepot with water to prepare his morning coffee. The water is clean and good because some tree-hugging liberal fought for minimum water-quality standards. With his first swallow of coffee, he
takes his daily medication. His medications are safe to take because some stupid commie liberal fought to insure their safety and that they work as advertised.
All but $10 of his medications are paid for by his employer’s medical plan because some liberal union workers fought their employers for paid medical insurance – now Joe gets it too. He prepares his morning breakfast, bacon and eggs. Joe’s bacon is safe to eat because some girly-man liberal fought for laws to regulate the meat packing industry.
In the morning shower, Joe reaches for his shampoo. His bottle is properly labeled with each ingredient and its amount in the total contents because some crybaby liberal fought for his right to know what he was putting on his body and how much it contained. Joe dresses, walks outside and takes a deep breath. The air he breathes is clean because some environmentalist wacko liberal fought for laws to stop industries from polluting our air. He walks to the subway station for his government-subsidized ride to work. It saves him considerable money in parking and transportation fees because some fancy-pants liberal fought for affordable public transportation, which gives everyone the opportunity to be a contributor.
Joe begins his work day. He has a good job with excellent pay, medical benefits, retirement, paid holidays and vacation because some lazy liberal union members fought and died for these working standards. Joes employer pays these standards because Joe’s employer doesn’t want his employees to call the union.
If Joe is hurt on the job or becomes unemployed, he’ll get a worker compensation or unemployment check because some stupid liberal didn’t think he should lose his home because of his temporary misfortune.
Its noontime and Joe needs to make a bank deposit so he can pay some bills. Joe’s deposit is federally insured by the FSLIC because some godless liberal wanted to protect Joe’s money from unscrupulous bankers who ruined the banking system before the Great Depression.
Joe has to pay his Fannie Mae-underwritten mortgage and his below-market federal student loan because some elitist liberal decided that Joe and the government would be better off if he was educated and earned more money over his lifetime.
Joe is home from work. He plans to visit his father this evening at his farm home in the country. He gets in his car for the drive. His car is among the safest in the world because some America-hating liberal fought for car safety standards. He arrives at his boyhood home. His was the third generation to live in the house financed by Farmers’ Home Administration because bankers didn’t want to make rural loans. The house didn’t have electricity until some big-government liberal stuck his nose where it didn’t belong and demanded rural electrification.
He is happy to see his father, who is now retired. His father lives on Social Security and a union pension because some wine-drinking, cheese-eating liberal made sure he could take care of himself so Joe wouldn’t have to.
Joe gets back in his car for the ride home, and turns on a radio talk show. The radio host keeps saying that liberals are bad and conservatives are good. He doesn’t mention that the beloved Republicans have fought against every protection and benefit Joe enjoys throughout his day.
Joe agrees: “We don’t need those big-government liberals ruining our lives! After all, I’m a self-made man who believes everyone should take care of themselves, just like I have.”