Employers added 263,000 jobs in September on a seasonally adjusted basis as the labor market continues its strong post-pandemic recovery, but an uptick in hiring also contradicts the efforts of the Federal Reserve as it works to curtail job growth enough to tame inflation, The New York Times reports. Labor participation remained at a solid 62.3% in September, unchanged from the months prior, but the unemployment rate fell to 3.5% from 3.7% a month earlier.
The Federal Reserve’s interest rate increases are cooling off a frenzied labor market, but not enough to send the economy into a recession. Still, job openings are gradually decreasing as employers begin to rein in hiring in what could potentially be a workforce slowdown toward the end of 2022.
The Federal Reserve’s next rate decision is scheduled for Nov. 2, and officials have emphasized that the central bank is watching the jobs data closely as they determine how aggressive to be. They are eager to see evidence that interest-rate increases are cooling off a frenzied labor market, but not enough to tip the economy into a recession.For months, job growth defied expectations, as employers continued to add workers despite increased borrowing costs.
“The labor market has been a Ferrari the last year and a half,” said Nick Bunker, director of North American economic research for the career site Indeed. “It’s slowing down but still moving very, very quickly.”
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