The U.S. economy created a robust 254,000 new jobs in September, indicating the labor market is still in pretty good shape and likely supporting a gradualist strategy by the Federal Reserve in cutting interest rates.
The increase in employment was much larger than Wall Street expected. Economists had predicted a 150,000 increase in new jobs in September after seasonal adjustments.
Hiring gains were also stronger than previously reported in August and September.
The unemployment rate, meanwhile, slipped to 4.1% from 4.2% and also suggested the jobs market was stable. The jobless rate has fallen two months in a row from a more than three-year peak.
The strong jobs report was likely to keep the Fed on a more gradualist approach to cutting rates instead of a more aggressive one.If the economy strengthens further, it could even call into question whether the Fed will cut rates as much as it has signaled to investors.
The Fed has penciled in a likely quarter-point cut in a key U.S. interest rate at its next big meeting right after the November presidential election.
