The September U.S. jobs report showed a modest increase in payrolls and a slowdown in wage growth, prompting a shift in market expectations. After the release, stocks rose and the probability of an October FOMC rate hike declined.
The September U.S. jobs report showed payrolls up 29,000 from the previous month, below the market forecast of an increase of 90,000. Revisions for the previous 2 months totaled a decrease of 60,000.
However, the 3-month average increase in payrolls was 51,000, nearly unchanged, avoiding a major adjustment to the labor market outlook. The private sector added 46,000 jobs in September, while the 3-month average was 54,000.
By industry, leisure and hospitality continued to increase, adding 10,000 jobs from the previous month, while education and healthcare added 20,000. Information declined by 10,000 and financial activities by 7,000, continuing their downward trends. Government employment fell by 17,000.
Following the data, views spread that the market had responded to easing inflation concerns, and commentary suggested that the probability of an October FOMC rate hike had declined.