Research
October 04, 2024

Total U.S. jobs

U.S. Job Growth Was Robust in September

Nonfarm payroll job growth rose by a robust 254,000 workers in September, up from 159,000 in August and the best reading since March. There were also upward revisions to the July and August data that added 72,000 to what was already estimated. Overall, these data reflect some renewed strength in the labor market as we move into the autumn months after slowing over the summer.

The U.S. economy has generated 1.8 million net new jobs year to date in 2024, down from nearly 2.4 million over the same 9-month period in 2023. With the latest data, U.S. job growth has increased for 45 consecutive months, adding 16.6 million employees over that time. In addition, total U.S. nonfarm payroll employment is now roughly 6.8 million (or 4.5%) above the February 2020 pre-pandemic peak, rising to a new record level: 159.1 million.

After hitting 4.3% in July, the highest since October 2021, the unemployment rate inched down for the second straight month to 4.1% in September. The number of unemployed individuals rose decreased from 7,115,000 to 6,834,000. At the same time, the labor force participation rate remained at 62.7% for the third consecutive month. 

Average hourly earnings for production and nonsupervisory workers among private sector workers rose 3.9% over the past 12 months. Despite remaining somewhat elevated, average hourly earnings have largely trended lower since peaking at 7.0% in March 2022.

Job growth in September was led by gains in private education and health services, leisure and hospitality, construction, and state and local governments. Eating and drinking places added a very strong 69,400 workers in the month. The only major sector with declining employment in September was manufacturing. Overall, the private sector added a net 223,000 jobs in September, while government employment increased by 31,000. Here is a breakdown of the employment growth in September by sector (ranked from highest to least):

  • Private education and health services (up 81,000)
  • Leisure and hospitality (up 78,000, with eating and drinking places up 69,400)
  • Construction (up 25,000)
  • Local government (up 16,000)
  • State government (up 13,000)
  • Trade, transportation and utilities (up 13,000, with retail sales up 15,600 and transportation and warehousing down 8,600)
  • Professional and business services (up 12,300)
  • Financial activities (up 5,000)
  • Information (up 4,000)
  • Other services (up 4,000)
  • Mining and logging (up 3,000)
  • Federal government (up 2,000)
  • Manufacturing (down 7,000)

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