U.S. payrolls surge as jobless rate holds steady

United States payrolls increased by the largest amount in eight months in even as the jobless rate remained unchanged in September.

Nonfarm payrolls grew 336,000 and the unemployment rate held steady at 3.8 percent, according to the latest estimates from the U.S. Bureau of Labor Statistics.

The September payroll gain was the largest for a single month since January. The unemployment rate remained at its highest level since February 2022.

Payroll gains for the previous two months were revised upward a total of 119,000 to 227,000 for August and 236,000 for July.

For September, 6.4 million people were counted among those unsuccessfully looking for work. Of those, 1.2 million people have been out of work 27 weeks or longer. Another 4.1 million people were counted among those working part-time because their hours were cut or they were unable to find full-time positions.

The labor participation rate — the proportion of the population either working or looking for work — held steady at 62.8 percent.

Payroll gains for September were spread out among industry sectors. Employment increased 96,000 in leisure and hospitality — 61,000 in food and drinking places as payrolls for those businesses rebounded to levels before the onset of the COVID-19 pandemic in early 2020.

Payrolls rose 41,000 in health care, 29,000 in professional and business services and 25,000 in social assistance. Government payrolls increased 73,000.

The average workweek for employees on private, nonfarm payrolls remained unchanged at 34.4 hours. The average manufacturing workweek held steady at 40.1 hours.

Average hourly earnings for employees on private, nonfarm payrolls rose 7 cents to $33.88. Over the past year, average hourly earnings increased 4.2 percent.