Good Time to Find a Job!

September Labor Report

It is a great time to find a job. The recent labor market data tells me that my students graduating this semester are going to have a great labor market. So, if you are looking for a job, or soon to be graduating, today’s labor market data is music to your ears.

It was a busy week for labor data. We are covering the data, and helping you make sense of the new trends. So, here is a summary of what happened this week.

BLS Unemployment Report

Total nonfarm payroll employment rose by 336,000 in September. This is a huge number and much higher than what was expected. While this is good news for some, it is bad news for others. The labor market remains resilient despite increases in the interest rate. We have been anticipating a slowing labor market, but today’s report shows that the labor market continues to exceed expectations. The revisions by the BLS of previous month’s data show upward revisions, meaning that previous estimates were lower than actual.

This is good news for those seeking jobs, and for employees. However, the stock market will probably not like this news because it signals that there is room for the Fed to continue increase interest rates.

The unemployment rate was unchanged at 3.8 percent.

Job Openings

There are now 9.6 million jobs available. This is an increase from last months 8.8 million jobs available. There are now 0.7 unemployed people per job opening. This is great for those that are looking for jobs, and indicates that firms remain interested in hiring.

ADP Employment Data

The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.

In August, ADP data shows an increase of 177,000 new jobs. Private sector employment increased by 89,000 jobs in September and annual pay was up 5.9 percent year-over-year, according to the September ADP^® National Employment Report^TM. September showed the slowest pace of growth since January 2021, when private employers shed jobs. Large establishments drove the slowdown, losing 83,000 jobs and wiping out gains they made in August.

Jobless Claims

Initial filings for unemployment benefits totaled a seasonally adjusted 207,000 for the week ended Sept. 30, up just 2,000 from the previous period and below the Dow Jones consensus estimate for 210,000.

You might wonder if the Uniter Auto Worker strike is impacting these numbers. The U.S. Bureau of Labor Statistics (BLS) handles jobless claims from strikes in a specific way to ensure that labor strikes do not distort the overall labor market statistics. When workers go on strike, they typically do not work and do not receive wages from their employers. However, with the exception of New York and New Jersey, employees on strike can not claim unemployment benefits.

The Takeaway

For all of my students graduating in December, it looks like the odds of finding a job is high. There are many job opening, and firms are hiring. Good luck, and make sure to negotiate for a higher wage. It has been great working with my students as they navigate offer letters. The job market is on your side.