The Numbers

The U.S. economy added 119,000 jobs in September, beating expectations. The forecast was for 50,000.

That's up from the 4,000 jobs lost in August after a downward revision. July was also revised down to 72,000, a decrease of 7,000.

The unemployment rate edged higher to 4.4%. That's the highest since October 2021. A broader measure that includes those not looking for jobs fell to 8%.

Average hourly earnings rose 0.2% for the month and 3.8% from a year ago. Forecasts were for 0.3% and 3.7%.

The Data Drought

The report ends a data drought on the labor market that began in early September. It continued through the record 44-day government shutdown.

Agencies including the BLS and Bureau of Economic Analysis were prohibited from collecting or releasing data during the shutdown.

This was the first BLS jobs report since the August count released September 5.

The Uncertainty

"September's jobs report shows the labor market still had resilience before the shutdown," said Daniel Zhao, chief economist at Glassdoor. "But the picture remains muddy with August jobs revised to a job loss and the unemployment rate increasing."

He added: "These numbers are a snapshot from two months ago and they don't reflect where we stand now in November."

The Market Reaction

Stock market futures added to gains following the report. Treasury yields were mostly lower.

Traders continued to bet the Federal Reserve won't lower rates at its December 9-10 meeting. This is the last jobs report Fed policymakers will get before then.

"Despite the fact that today's jobs report is very backward looking, it's making markets move," said Seema Shah, chief global strategist at Principal Asset Management.

Where Jobs Came From

Health care led with 43,000 jobs added. Bars and restaurants contributed 37,000. Social assistance added 14,000.

Transportation and warehousing lost 25,000 jobs. Federal government dropped 3,000. Professional and business services declined 20,000.

The Household Survey

The household survey painted a brighter picture. Total employed rose by 251,000. The labor force increased by 470,000 to a fresh record of 171.2 million.

The participation rate edged higher to 62.4%, the highest since May.

Full-time employment swelled by 673,000. Part-time jobs fell by 573,000.

What's Next

The BLS will release October and November jobs data simultaneously on December 16. October's numbers won't include the unemployment rate calculation because that survey couldn't be completed during the shutdown.

Initial jobless claims totaled 220,000 for the week ending November 15, down 8,000 from the prior period.

The Bottom Line

September's 119,000 jobs added beat forecasts, but with August revised to show losses and unemployment at 4.4%, the delayed report offers a murky two-month-old snapshot that leaves Fed officials navigating policy decisions without clear current data.