MNI BRIEF: U.S. Adds 119K Jobs, Unemployment Rises To 4.4%

The U.S. economy added 119,000 jobs in September well above expectations, but the jobless rate rose to 4.4%, the highest since October 2021, according to figures Thursday from a recently reopened Labor Department.

It was a mixed release that offered fodder for both Federal Reserve hawks and doves as policymakers look to make a decision on whether to lower interest rates at their upcoming December meeting. Minutes from the Fed's October meeting released Wednesday showed a deeply divided FOMC. (See MNI INTERVIEW: Fed Dec Pause Would Preserve Options - Sheets)

"Job losses occurred in transportation and warehousing and in federal government," the Bureau of Labor Statistics report said. Total nonfarm payroll employment "has shown little change since April." 

Average hourly earnings climbed 0.2%, down from 0.4% in August. Total nonfarm payroll employment edged up by 119,000 in September but has shown little change since April. Payrolls were revised down for August to show a decline of 4,000 jobs, while the July numbers were revised down 7,000 to 72,000 -- leaving the prior two months' growth 33,000 lower than previously reported.