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US Jobs Rise While Unemployment Drops, Keeping Pressure on Fed

  • Payrolls climbed 263,000 last month, jobless rate fell to 3.5%
  • Data reaffirms traders’ bets for another big Fed rate hike
Bloomberg business news
US Adds 263,000 Jobs in Sept., Topping Estimates
Updated on

The US labor market stayed strong in September as the unemployment rate unexpectedly returned to an historic low, leaving the inflation-phobic Federal Reserve on course to deliver yet another aggressive interest-rate hike.

Nonfarm payrolls increased 263,000 in September after a 315,000 gain in August, a Labor Department report showed Friday. The unemployment rate dropped to 3.5%, matching a five-decade low. Average hourly earnings rose firmly.