Economy adds 336k jobs in September, with implications for unions, job-seekers, and Fed interest rate decisions: CEI analysis

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The economy added 336,000 jobs in the month of September, according to just-released government numbers. CEI experts expect this means opportunities for labor unions, job-seekers, and the Federal Reserve.

Sean Higgins, CEI Research Fellow

“Employers accelerated their pace of hiring in September, adding 336,000 jobs and showing that the labor market remains extraordinarily tight. Wages rose by 7 cents in September, indicating that employers are still scratching to fill positions.

“The tightness of the market portends more labor strikes in the near-future, following the waves of walkouts by autoworkers, health care workers at Kaiser Permanente, actors and writers in Hollywood and elsewhere. Union leaders realize the tightness of the market puts them in a strong position to demand more from employers in contract negotiations. Expect more unions to strike while the economic circumstances remain this advantageous for them.”

Ryan Young, CEI Senior Economist

“This was a good jobs report. Labor force participation increased to 62.8 percent, which means more people are entering the job market. Labor force participation has been increasing steadily since January 2021 and is now back to normal range compared to the period 2014-2019.

“The unemployment rate stayed the same at 3.8 percent, which means those new job-seekers are able to find jobs. The COVID downturn really is behind us.

“The labor market’s continued strength gives the Federal Reserve more cushion to continue its inflation-fighting policies without sparking a recession.”