Payrolls rise by $336,000

(NBC) - The U.S. Labor Department said the nation's economy added 336,000 payrolls to the books in September, which is far better than expected.

Job growth was much stronger than expected in September a sign that the U.S. Economy is hanging tough despite higher interest rates and labor distress.

The Labor Department said Friday that payrolls increased by $336,000 for last month, better than the Dow Jones consensus estimate for $170,000 and more than $100,000 higher than in August.

The unemployment rate in September stayed the same at 3.8 percent.

According to the Bureau of Labor Statistics, the job gains took place in the leisure and hospitality, government, and healthcare industries, among others.

Stock market futures turned sharply negative following the report and treasury yields jumped.

Dow futures were down more than 250 points, while the 10-year treasury yield soared 0.17 percentage point to 4.87 percent, up around its highest levels since the early days of the financial crisis.

The payrolls increase was the best monthly number since January.

Wage increases, however, were softer than expected, with average hourly earnings up 0.2 percent for the month and 4.2 percent from a year ago - that's compared to respective estimates for 0.3 percent and 4.3 percent.