US added 254,000 jobs in September, unemployment rate dips to 4.1%

The United States added 254,000 jobs last month as the jobless rate crept lower in what is seen as a better-than-expected performance for the month of September.

Data released by the Department of Labor provided respite to policymakers ahead of the November 5 presidential election.

The addition of 254,000 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.

How did the stock market react?

Shares on Wall Street jumped after the data was released that proved the US labor market is still solid despite years of elevated interest rates.

Futures for the S&P 500 rose 0.8 per cent before the bell, while futures for the Dow Jones Industrial Average climbed 0.5 per cent.

Recent data indicates that a significant number of companies remain optimistic about hiring, despite ongoing challenges posed by elevated interest rates. While layoffs are relatively uncommon, many employers have adopted a more cautious approach to recruitment.

Stocks are near their records because of hopes the US economy will indeed continue to grow, now that the Fed is cutting interest rates. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

With inputs from agencies