U.S. Job Growth Far Exceeds Expectations in September, Keeping Pressure on Fed to Raise Rates

The U.S. economy added 336,000 jobs in September, far exceeding expectations and indicating a still-resilient labor market.

Wage growth moderated slightly but still outpaces inflation, while job gains were widespread across sectors like hospitality, health care, and government.

The hot jobs report signals the Federal Reserve may need to raise interest rates higher and keep them elevated longer to cool the economy.

Some sectors like manufacturing and construction are slowing as expected, but the labor market refuses to downshift dramatically.

Labor strikes in Hollywood, auto plants, and health care could dampen consumer spending and lead to more layoffs.