Pay Band Manager, a first-of-its-kind HR solution, has launched!

Learn more
LaborIQ

Labor Market Reports | October 4, 2024

Labor market roller coaster: September jobs report brings surprising news

This week, we are breaking down the latest “First Friday” jobs report. The U.S. labor market outperformed expectations in September, following a string of jobs reports showing the economy moving in the wrong direction.

The economy added 254,000 jobs in September, surpassing expectations of around 150,000. Reversing recent trends of downward revisions, hiring totals for July and August were revised upward by a combined 72,000 jobs. For the second month in a row, the unemployment rate ticked down, reaching 4.1%. Wages grew by 4% over the past 12 months, up from 3.8% in August.

September Jobs Report Graphic

Labor market momentum has stalled – and even reversed – in recent months. However, September’s jobs report points to an economy that is normalizing, not backsliding. One month of data doesn’t create a trend, but this report indicates that the labor market was doing a bit better than we thought over the past couple of months.

The labor market appears to be stabilizing after months of less-than-stellar reports. However, there’s plenty of uncertainty on the horizon:

  • U.S. elections will decide the next President as well as which political party controls Congress, but new policy priorities will likely take months to enact and even longer for businesses to feel the effect.
  • Continued turmoil abroad could create broader challenges, but the U.S. economy has been relatively resilient to these developments in recent years.
  • Hurricane Helene devastated parts of the east coast, and it’s likely to have an impact on October’s employment totals.

 

For businesses, the messages from the September jobs report are continued normalization and movement away from potential recession. Hiring volumes are slower. But it’s still a tight labor market, and compensation is not cooling at the pace we expected heading into 2024.


Job gains | Picking up some momentum

The 254,000 new jobs added by U.S. employers in September is getting all the headlines – and rightfully so. This is the highest monthly total since March of this year. Through the first nine months of 2024, the labor market has added 1.8 million new jobs, an average of 200,000 each month.

Monthly change in jobs

️ Industries | A few sectors continue to dominate

It’s hard to find much negative news in this month’s report.

However, the biggest challenge in the labor market continues to be job gains concentrated in just a few industries – Leisure and Hospitality (+78,000), Healthcare (+45,000), and Government (+31,000). The “big three” accounted for nearly two-thirds of all jobs added in September. Manufacturing (-7,000) was the only major sector to lose jobs last month.

Other bright spots:

  • Construction (+25,000) hiring was bolstered by job gains for specialty trade contractors, including plumbers, electricians, painters, and concrete pourers. Despite challenges of high interest rates, Construction continues to add jobs at a solid pace.
  • Information (+4,000), which includes tech and media companies, has been a weak spot in the labor market and still has 12,000 fewer jobs compared to a year ago. While media struggled last month, tech companies (computing infrastructure and web search portals) combined to add over 6,000 jobs.

Unemployment rate | Ticking down again

The unemployment rate came down for the second straight month, and for all good reasons. The number of employed workers went up, and the number of unemployed job seekers went down. Sometimes a decline in the unemployment rate can be the result of disaffected job seekers leaving the labor force entirely.


Wages and compensation | More good news for workers

After a few months of sub-4% annual growth, wages grew by 4.1% over the 12 months ending in September.

For workers, this is another month where wages have outpaced inflation. For businesses, even in industries that may be sluggish right now, it’s important not to lose focus on compensation and talent retention.

Mallory Vachon - Blue Lines

HR teams and business leaders use LaborIQ for market-competitive compensation benchmarks. In an evolving job market, you need to know what salaries to offer to retain employees and fill open positions faster.

Want to hear about how LaborIQ can help your HR team? Learn more OR fill out the form to get a complimentary salary report for one of your roles.

Related Posts

Explore The Latest With Labor IQ

February 7, 2025

January 2025 Jobs Report: Bigger story beneath the surface of January’s jobs report

Labor Market Reports

January 10, 2025

December 2024 Jobs Report: The Case for Optimism in 2025 ️

Labor Market Reports

December 6, 2024

November Jobs Report: What to watch for as we close out 2024

Labor Market Reports

November 1, 2024

October Jobs Report: Don’t panic over the noisy jobs report

Labor Market Reports

October 4, 2024

Labor market roller coaster: September jobs report brings surprising news

Labor Market Reports

September 9, 2024

The labor market is moving in the wrong direction ↩️

Labor Market Reports

August 2, 2024

July Jobs Report Hiring slowdown, here’s what that means for employers

Featured Hiring Labor Market Reports

July 24, 2024

Why Finding A New Job Is So Hard Right Now

Featured Hiring Labor Market Reports

July 9, 2024

June Jobs Report Is the jobs report finally catching up to reality?

Featured Hiring Labor Market Reports

June 7, 2024

May Jobs Report Is the labor market as strong as headline numbers suggest?

Featured Hiring Labor Market Reports

May 6, 2024

Hiring slows in April, healthcare dominates

Featured Hiring Labor Market Reports

April 8, 2024

March 2024 Jobs Report: U.S. Employment Boom Continues… for Most Sectors

Hiring Labor Market Reports

March 1, 2024

February 2024 Jobs Report: Above expectations, but there’s more to the story

Hiring Labor Market Reports

February 2, 2024

January 2024 Jobs Report: January jobs on fire

Hiring Labor Market Reports

January 5, 2024

December 2023 Jobs Report: Strong start to 2024

Hiring Labor Market Reports

December 8, 2023

November 2023 Jobs Report: November’s 199K job gains misleading for most businesses

Hiring Labor Market Reports

November 3, 2023

Hiring Cools in October

Hiring Labor Market Reports

October 6, 2023

Hiring Accelerates in September

Hiring Labor Market Reports

September 1, 2023

U.S. Job Growth Continues to Cool

Hiring Labor Market Reports

August 4, 2023

Job Growth Has Normalized and That’s Okay

Hiring Labor Market Reports

July 7, 2023

Economy Added a Solid 209,000 Jobs in June

Hiring Labor Market Reports

June 15, 2023

Job Growth Momentum Across Industries

Labor Market Reports

June 2, 2023

Businesses Are Hiring: Robust Job Gains in May

Hiring Labor Market Reports

May 5, 2023

Despite Layoffs, Unemployment Is Lowest in 50 Years

Labor Market Reports

April 7, 2023

More than 1 Million Jobs Added in 2023

Featured Labor Market Reports

April 5, 2023

How Slow-Recovery Industries Are Reviving Since the Pandemic

Labor Market Reports

March 24, 2023

Why Businesses are Feeling the Pinch of Higher Interest Rates

Labor Market Reports

March 10, 2023

Labor Market Momentum Continued in February with 311,000 Added Jobs

Hiring Labor Market Reports

March 8, 2023

Inflation: What Does It Mean for the Job Market?

Featured Labor Market Reports

March 6, 2023

Labor Market Trends in 2023

Labor Market Reports

February 3, 2023

Head-Scratching Job Gains in January: Labor Market Remains Hot

Labor Market Reports

January 31, 2023

What’s Happening to Remote Work

Hiring Labor Market Reports

January 6, 2023

Wage Growth Slows to 4.6%

Labor Market Reports

December 2, 2022

The Labor Market Has Not Gotten the Memo

Labor Market Reports

November 23, 2022

A Step-by-Step Guide to the Compensation Planning Process (Clone)

Labor Market Reports

November 4, 2022

Labor Market Rolling Strong with 261,000 Jobs Added in October

Labor Market Reports

September 19, 2022

Inflation: How It Impacts Working Parents and Child Care Costs

Compensation Labor Market Reports

September 12, 2022

The Return To Office: Impact on Turnover and Compensation Demands

Labor Market Reports

June 27, 2022

Interest Rates Hike Again: Consumer Demand at Stake

Labor Market Reports

June 22, 2022

Workplace Communication Across Generations

Labor Market Reports

October 7, 2021

5 Essential Job Market Indicators That Impact Hiring

Labor Market Reports