The U.S. economy created 119,000 jobs in September, surpassing Wall Street expectations, according to a Labor Department report released Thursday.
The report, delayed due to a roughly 40-day government shutdown, provides a snapshot of the labor market before federal agencies temporarily closed.
The Bureau of Labor Statistics, which compiled the report, confirmed that the unemployment rate rose slightly to 4.4% in September from 4.3% in August.
Job creation in previous months was revised downward, with July’s gain adjusted from 79,000 to 72,000 and August’s numbers shifting from a gain of 22,000 to a loss of 4,000.
Combined, these revisions show 33,000 fewer jobs were added in July and August than initially reported.
Government payrolls increased by 22,000 jobs in September after declining by the same amount in August. State governments added 16,000 jobs, local governments contributed 9,000, while the federal government lost 3,000 positions.
Overall, federal employment has fallen by 97,000 jobs since peaking in January, although workers on paid leave or receiving severance are counted as employed in the survey.
The private sector posted mixed results. The manufacturing sector declined by 6,000 jobs, less than the 8,000 expected by LSEG economists, while healthcare employment rose by 42,800 positions, per the Conservative Brief.
Growth in healthcare was driven by ambulatory services (+23,300) and hospitals (+16,400). Food services and drinking establishments added 36,500 jobs, and social assistance expanded by 14,300 positions.
Transportation and warehousing contracted by 25,300 jobs, largely due to declines in warehousing and storage (-10,700) and courier services (-6,700).
The labor force participation rate remained steady at 62.4% in September, while the employment-population ratio held at 59.7%, down slightly by 0.4 percentage points from last year.
Long-term unemployment, defined as 27 weeks or more, stayed at 1.8 million, representing 23.6% of all unemployed individuals.
Part-time workers seeking full-time employment remained unchanged at 4.6 million, and those holding multiple jobs increased by 17,000, or 5.4% of total employment.
Economists note that the September jobs report is somewhat backward-looking because it does not reflect the effects of the recent government shutdown. Still, it offers reassurance that the labor market remained resilient prior to the closure of federal agencies.
The report comes as the Federal Reserve considers lowering interest rates for the third consecutive month in December.
Despite inflation remaining above the Fed’s 2% target, officials reduced rates by a quarter-point in September and October, citing concerns about the health of the job market.
Nancy Vanden Houten, lead economist at Oxford Economics, said the report “offers reassurance that the labor market wasn’t crumbling before the government shutdown. There is nothing in the data to warrant a change to our forecast for the Federal Reserve to leave rates unchanged at the December meeting.”
The strong September numbers are likely to be viewed as a political win for President Donald Trump, who has frequently highlighted the labor market’s performance as evidence of his economic leadership.
Analysts say the report may provide momentum for the administration amid ongoing debates about inflation, interest rates, and employment policy.
