US Employment Still Hot... September Jobs 'Double Expectations' at 336,000 (Comprehensive)

Fed's Tightening Monetary Policy Expected to Continue

The heat in the U.S. labor market remains unabated.

[Image source=Yonhap News]

On the 6th (local time), the U.S. Department of Labor released an employment report stating that nonfarm payrolls increased by 336,000 in September compared to the previous month. This was more than 100,000 higher than the previous month's increase of 227,000 and about twice the expert forecast of 170,000 compiled by The Wall Street Journal (WSJ).

By sector, government public jobs increased by 73,000, and in the private sector, service industries such as restaurants and hotels saw an increase of 100,000. The increase in U.S. nonfarm payrolls peaked at 517,000 in January and showed a general downward trend until August.

The unexpected rise in job openings is seen as proof that employment demand in the U.S. remains strong. Accordingly, the Federal Reserve's (Fed) hawkish (preference for monetary tightening) stance is expected to continue for some time. The Fed has stated that it cannot change its tight monetary policy unless the overheating in the labor market eases. The market expects the Fed to raise the benchmark interest rate once more at the Federal Open Market Committee (FOMC) meeting next month.

Average hourly wages rose by only 0.2% from the previous month but increased by 4.2% compared to the same month last year, more than double the Fed's inflation target of 2.0%.

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