US Nonfarm Payroll Increases by 254,000 in September; Unemployment Ticks Down to 4.1%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 254,000 in September. This is above the average monthly gain of 203,000 over the prior 12 months.

Notable job growth occurred in the following sectors in September:

• Employment in food services and drinking places rose by 69,000, well above the average monthly gain of 14,000 over the prior 12 months.
• Health care added 45,000 jobs, below the average monthly gain of 57,000 over the prior 12 months.
• Employment in government continued its upward trend, adding 31,000 jobs—below the average monthly gain of 45,000 jobs over the preceding 12 months.
• Employment in social assistance increased by 27,000, higher than the average gain of 21,000 over the previous 12 months.
• Construction employment continued to trend higher, adding 25,000 jobs—similar to the average monthly gain of 19,000 over the prior 12 months.

Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; and other services.

Both the unemployment rate, at 4.1%, and the number of unemployed people, at 6.8 million, changed little in September. These measures are higher than a year earlier, when the jobless rate was 3.8% and the number of unemployed people was 6.3 million.

Revisions

Monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. The change in total nonfarm payroll employment for July was revised up by 55,000—from 89,000 to 144,000—and the change for August was revised up by 17,000—from 142,000 to 159,000. With these revisions, employment in July and August combined is 72,000 higher than previously reported.