September’s Strong Jobs Report Alters the Economic Outlook
Job Growth Stronger Than Expected in September
- 254,000 jobs added in September, surpassing expectations
- Revisions added 72,000 more jobs to the July and August total
- Unemployment rate ticked down to 4.1%
- Wage growth hit a four-month high
Jobs Report Likely Impacts Federal Reserve Policy
- The jobs report has weakened the case for a 50-basis-point interest rate cut in November
- The Fed may now consider pausing rate cuts to assess economic conditions
- Overnight rate still expected to lower by 100bps by June 2025
Commercial Real Estate Outlook Remains Positive
- Job creation drives housing needs and consumption, the latter of which flows into space demand for retail and industrial properties
- Continued job growth could aid office utilization over time
Sources: Marcus & Millichap Research Services, BLS
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