Source:  U.S. Bureau of Labor Statistics via The New York Times.

Dear Commons Community,

Businesses added 254,000 jobs in September, the government reported yesterday, far surpassing forecasts. It was a sign that the economy, rather than stumbling into a slowdown, still has a spring in its step.

The unemployment rate declined to 4.1 percent, from 4.2 percent. Reported pay gains for workers were also better than expected, at 4 percent over the previous 12 months, an uptick from the August reading. With inflation continuing to ease substantially, that is welcome news for households trying to gain financial traction.  As reported by The New York Times.

The impressive job gains, across several industries, followed several months of slower hiring. And the previous two monthly reports were revised upward. For now, the data has all but erased analysts’ concerns, based on historical trends, that the “hard landing” of a recession could be looming in the near future.

“I actually think we are in the mother of all soft landings,” said Diane Swonk, the chief economist at the accounting firm KPMG, who had been among the prominent worriers.

Real-time estimates of overall economic growth remain strong. Productivity growth is robust, Ms. Swonk noted. Retail sales are solid. And interest rates, though high, have recently fallen.

“It appears the recovery is not only on solid ground, but will accelerate,” said Robert Frick, an economist at Navy Federal Credit Union. While “it pays to be skeptical” in the uncertain environment of the past year, he added, “the best news for American workers overall is wage growth remains good, and well above the rate of inflation — that means purchasing power is strengthening.”

Stocks rose on the news, as indications of a widely employed consumer base and a resilient economy are generally a boon to corporate earnings.

Good economic news all around!

Tony

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