The number of new jobs created in the U.S. in September exceeded expectations with a total of 254,000.

In September, the U.S. economy surpassed job growth expectations, indicating a robust employment outlook as the unemployment rate decreased, according to the Labor Department's report on Friday.

The number of nonfarm payrolls increased by 254,000 in September, surpassing the revised 159,000 from August and beating the Dow Jones consensus forecast of 150,000. Additionally, the unemployment rate decreased to 4.1% from 4.2% in August.

The revised report alleviates concerns about the labor market and may lead the Federal Reserve to adopt a more moderate approach to interest rate reductions. The upward revisions for August and July have increased the monthly growth rate to 144,000.

The increase in job creation led to higher wages, with average hourly earnings rising 0.4% in the month and 4% year-over-year, surpassing the predicted gains of 0.3% and 3.8%.

In September, the hospitality industry created 69,000 jobs, with restaurants and bars leading the way, after averaging only 14,000 positions over the previous 12 months.

The healthcare industry was the top job growth sector, adding 45,000 jobs, while the government grew by 31,000. Additionally, social assistance and construction also experienced growth with 27,000 and 25,000 jobs added respectively.

The unemployment rate, which takes into account discouraged workers and part-time jobs for economic reasons, decreased to 7.7%. Meanwhile, the labor force participation rate, which represents the percentage of the workforce either working or searching for work, remained unchanged at 62.7%.

The employment-to-population ratio increased to 60.2%, resulting in a gain of 430,000 in the survey of household employment, which is used to calculate the unemployment rate.

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