According to the Labor Department, payrolls rose in 39 states, with Texas leading the climb with a 36,400 gain in employment. These gains are paired with a decline in unemployment across 31 states, suggesting a distinct improvement in the US labor market. The job gains pave the way to a long awaited wage growth, which in turn is expected to accelerate consumer spending and boosting the economy as a whole. Despite the gains, some states reflected declines for the month, of which include California, Pennsylvania, and Virginia.
Companies are finally pretty stretched and feeling a little bit better about the future of economic activity, so they’re more confident in hiring workers… There’s still a lot of variation among the nation, but generally speaking, the trend is pretty positive.”- Sarah House, economist at Wells Fargo Securities LLC.
Such employment gains will also likely increase interest rates, which are currently hovering near zero. Policy makers are expected to announce the end of low rates during the next meeting, taking place October 28 to 29.
Read more here- “Payrolls Increased in 39 States in September Led by Texas,” (Victoria Stilwell, Business Week)