Nonfarm payrolls increase 336,000 in September
Unemployment rate unchanged at 3.8
Average hourly earnings rise 0.2; up 4.2 yearonyear

WASHINGTON, Oct 6 Reuters U.S. employment increased by the most in eight months in September as hiring rose broadly, pointing to persistent labor market strength that could give the Federal Reserve ammunition to raise interest rates again, though wage growth is slowing.

The largerthanexpected surge in nonfarm payrolls last month and sharp upward revisions to July and August39;s jobs counts reported by the Labor Department in its closely watched employment report on Friday cemented expectations that economic activity accelerated in the third quarter.

The labor market and the broader economy39;s resilience, 18 months after the U.S. central bank started raising rates to cool demand, suggest that monetary policy could remain tight for some time. The report followed news this week that job openings jumped in August and firsttime applications for state unemployment benefits remained low in September.

Financial markets and most economists believe the Fed is probably done hiking rates because longterm U.S. Treasury yields have jumped to 16year highs.

With bond yields soaring, the dollar strengthening, and equity market volatility increasing there is a renewed tightening of financial conditions that does some of the work for the Fed, so it39;s not a done deal the Fed hikes rates again, said Kathy Bostjancic, chief economist at Nationwide….