Another month of solid US hiring suggests more big Fed hikes

Jobs
FILE - A sign advertises for help The Goldenrod, a popular restaurant and candy shop, Wednesday, June 1, 2022, in York Beach, Maine. (AP Photo/Robert F. Bukaty, File)

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) – America’s employers slowed their hiring in September but still added 263,000 jobs, a solid figure that will likely keep the Federal Reserve on pace to keep raising interest rates aggressively to fight persistently high inflation.

Hiring fell from 315,000 in August to the weakest monthly gain since April 2021. The unemployment rate fell from 3.7% to 3.5%, matching a half-century low.

The Fed is hoping that a slower pace of hiring would eventually mean less pressure on employers to raise pay and pass those costs on to their customers through price increases – a recipe for high inflation.

But September’s job growth was likely too robust to satisfy the central bank’s inflation fighters.