Employers added 254,000 jobs in September, blowing away forecasts

Employers added 254,000 jobs in September, blowing away forecasts and reversing a slowdown in hiring that had prompted the Federal Reserve to make a jumbo rate cut at its meeting last month. 

Economists had forecast 140,000 new jobs, according to financial data provider FactSet. 

The unemployment rate inched down to 4.1%, versus 4.2% in the prior month.

The employment report marks the second-to-last reading on the labor market before the Federal Reserve’s November 7 rate decision meeting, when the central bank is expected to once again cut its benchmark rate. The Fed last month made a jumbo cut, its first rate reduction in four years, in the face of weakness in hiring and a cooling economy. 

“With stronger than expected data from this month’s jobs report, the GDP rate hovering at 3%, and jobless claims at their lowest in months, we have arrived at the soft landing the American economy has been hoping for,” noted Eric Roberts, executive director at financial services firm Fiera Capital. 

Employers had added 159,000 jobs in August and 144,000 in July.