U.S. job growth unexpectedly accelerated in September, evidence the labor market remains resilient even as it confronts high interest rates and stubborn inflation, according to the Labor Department.

Employers added 336,000 jobs in September. The unemployment rate, meanwhile, held steady at 3.8%.

Gains for July and August were revised up by a total of 119,000 jobs to a respective 236,000 and 227,000 Economists had predicted the US would add just 170,000 jobs last month and thought the unemployment rate would inch back down to 3.7%.

All of this may be of concern to the Federal Reserve, which has signaled it is closely watching the report for evidence the labor market is finally softening after more than a year of interest rate hikes.

The surge in hiring which threatens to keep inflation elevated could provide the U.S. central bank fodder to approve another interest rate hike this year and hold rates at peak levels longer than previously expected.

Source: Kuwait News Agency