Nonfarm payrolls grew more than expected in September as the unemployment rate fell to its lowest level since July 2008.
According to the latest employment report from the BLS, nonfarm payrolls grew by 248,000 in September.
The unemployment rate also fell to 5.9% from 6.1%, the first time the unemployment rate has been below 6% in more than six years.
Expectations were for a gain of 215,000 with the unemployment rate expected to remain at 6.1%.
The labour force participation rate fell to 62.7% from 62.8%, while wage growth came in less than expected.
Wages were flat month-over-month, and up 2% on a year-over-year basis, both missing expectations. Average weekly hours worked ticked up slightly, to 34.6 from 34.5.
The “U-6” unemployment rate, which counts total unemployed plus those employed part-time for economic reasons, fell to 11.8% from 12%.
Here were Wall Street’s full expectations:
- Nonfarm payrolls: +215,000
Private payrolls: +210,000
- Unemployment rate: 6.1%
- Average hourly earnings, month-over-month: +0.2%
- Average hourly earnings, year-over-year: +2.2%
- Average weekly hours worked: 34.5
In August, the jobs report came in light, with nonfarm payrolls growing by just 142,000 against expectations for 230,000 that was expected by economists.
August’s number was revised up to 180,000 from 142,000.
Following the jobs report, US stock futures are higher, with Dow futures up 92 points, S&P 500 futures up 12 points, and Nasdaq futures up 23 points.
The US dollar is also surging after the jobs report, moving back above 109 against the Japanese yen. The euro is also sliding against the dollar, sliding to about 1.254 against the dollar from about 1.262 ahead of the report.
This chart from the BLS shows the decrease in the unemployment rate, which has fallen faster than most everybody expected over the last year.
And this chart from the BLS shows the monthly change in nonfarm payrolls.