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The report released by the U.S. Department of Labor shows that the non-farm employment increased by 254,000 people in September, far exceeding the market's expectation of around 150,000 people. The unemployment rate was 4.1%, slightly down by 0.1 percentage points from the previous month. Along with the increase in employment, wages are also growing. The average hourly wage in September increased by 0.4% month-on-month, which is also higher than market expectations.

Additionally, the Department of Labor data shows that the non-farm new employment number for July was revised up from the original 89,000 to 144,000, and for August, it was revised up from 142,000 to 159,000.

The latest employment data significantly eased market concerns about the U.S. labor market cooling down too quickly, leading to an economic recession, which may prompt the Federal Reserve to be cautious when adjusting interest rates. After the data release, the expectation for a 50 basis points rate cut in November has cooled down significantly.

Data from the Chicago Mercantile Exchange's FedWatch tool shows that the market estimates the probability of a 25 basis points rate cut in November at 95.1%, compared to 67.9% a day earlier; the probability of another 25 basis points rate cut in December is estimated at 79.2%.

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Some analysts believe that the unexpected surge in non-farm employment, combined with the unexpected decline in the unemployment rate, greatly increases the possibility of the U.S. economy achieving a "soft landing." Federal Reserve Chairman Jerome Powell and other Fed officials have recently stated multiple times that they do not want to see further cooling in the labor market conditions. The main task of the Federal Reserve is to suppress inflation while avoiding the deterioration of the labor market.

The Federal Reserve implemented its first interest rate cut in four and a half years at its monetary policy meeting in September, lowering the benchmark federal funds rate range by 50 basis points to 4.75%-5.0%. The main motive for the unconventional 50 basis points rate cut was to avoid a significant cooling of the labor market, which to some extent included a "compensation" for not cutting rates in July. Powell admitted at the press conference after the rate cut that if he had seen the non-farm employment report released in July earlier, the Federal Reserve would likely have cut rates in July.

Powell said earlier this week that the Fed will continue to cut rates to maintain robust economic growth, but there is no reason to cut rates as significantly as last time. The Federal Reserve's next policy meeting will be held on November 6th and 7th.

The October employment report will be released before this, and analysts expect that the number of employed people in October may be far less than in September. This month, dockworkers at dozens of ports across the United States held large-scale strikes, and Hurricane Helen may also make the labor market "worse."

James Knightley, Chief International Economist at ING Group, pointed out that the Federal Reserve has reasons to be cautious, but the resilience of the U.S. economy often exceeds expectations. To continue maintaining this momentum, the Federal Reserve needs to gradually relax its policies and provide more breathing space for economic growth.

Department of Labor data shows that the increase in recruitment scale in September was mainly driven by the leisure and hospitality industry, healthcare industry, and government sector. Among them, the leisure and hospitality industry added 78,000 new positions, while the healthcare industry and government sector contributed 45,000 and 31,000 new positions, respectively.