Contrary to expectations, the US labor market showed impressive results in September with the country’s employers creating 254 000 new posts, while economists predicted the number would be closer to 150 000. The U.S. unemployment rate also dropped by a fraction to decrease to 4.1%, based on data from the U.S. Labor Department.

Rehabilitation of job growth is seen as the best performance since March and will be welcome news by economists and policy makers who have been worrying about the slowing down of the economy. Hearing the report, President Joe Biden indicated that it was good news for the workers and families of America pointing to more than 250000 new jobs in September, and unemployment falling to 4.1% again.

However, going by polls, the public has not yet embraced enthusiasm towards the economy. Despite low unemployment rate and continuous job creation, there has been increased doubts occasioned by average price increase of 20% from 2021. In the recent yesterday, hiring has been reported to be rising little slower than in previous years while there has been some variation in the unemployment rate, though still very low.

Recently, due to fears about market of employees, the US central bank reduced the interest rates to 0.5 pp in an attempt to stimulate an economy. The latest report however makes it possible and dismisses earlier claims of an upcoming recession especially with good wage increase claims, average hourly wages increased by 4% in the year.

Bars and restaurants led hiring in September, increasing payrolls by 69,000; retail and health care also saw employer gains. But the manufacturing sector suffered jobs cuts. The Labor Department also adjusted its data on employment growth in previous months by about 72,000 more than previously estimated in August and July.