Will September Job Surge Put Rate Cuts on Hold

Written By Christian Desnoes

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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Christian Desnoes
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