US Adds More Jobs Than Expected in September, But Wage Growth Lags

The US economy added 336,000 jobs in September, nearly double what economists expected. The unemployment rate remained flat at 3.8%.

Wage growth was less than expected, rising just 0.2% over last month and 4.2% over last year.

The leisure and hospitality sector saw the biggest job gains, adding 96,000 jobs. Food services and drinking places added 61,000 jobs.

The strong jobs report increased expectations of a Fed rate hike in November to counter inflation. Markets reacted negatively.

Fed Chair Jerome Powell has said continued labor market tightness could warrant further rate hikes. He wants to see "softening" to bring down inflation.